German pension giant awards €150m REIT mandate

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Germany’s largest occupational pension fund has awarded US group Principal Global Investors a €150 million mandate to invest in real estate.

The award by Bayerische Versorgungskammer (BVK), which has €59 billion in assets, is part of plans to expand its global reach.

BVK said the move is designed to help further diversify its real estate exposure and also participate in the growth of the real estate investment trust sector.

Commenting on the award, a spokesperson for Principal Global Investors said: ‘Clients of our REIT portfolios e.g. not only profit from our long standing real estate expertise but can also build on our solid equity research as well as global research platform.’

Principal Global Investors said the award will help further develop its presence in the German market, having first established itself among the country’s institutional investors in 2003.

It has a dedicated German subsidiary based in Munich which also serves the Austrian and Swiss markets.

Speaking to Citywire Global in 2011, BVK’s head of asset management, André Heimrich, explained how the group had moved away from investing primarily in the bonds market to create a more diverse investment universe.