Saving bank clients continue to invest in Deka open-ended real estate funds +++ Net sales of EUR 350 million in 2024 for open-ended real estate funds aimed at private investors / Positive start to 2025 +++ Transaction volume of EUR 1.7 billion in 2024 / Purchase opportunities taken +++ Real estate assets rise to EUR 51 billion at the end of 2024
Saving bank clients continued to rely on Deka's open-ended real estate funds in 2024, with the funds recording net sales of EUR 350 million. This positive trend is continuing through into 2025. In the first four weeks of 2025, Deka's open-ended real estate funds aimed at private investors achieved net sales of EUR 262 million, driven by the reinvestment of distributions. Returns on Deka's large, established open-ended real estate funds ranged between around two and three percent, — significantly above the industry average.
"In 2024, investors benefitted from the conservative management style of our funds and achieved decent returns. Product quality remains high thanks to managing cash inflows systematically, focusing on real estate in prime locations and avoiding project development risks. We therefore expect our funds to perform at a similarly high level in 2025 as they did last year", says Dr Matthias Danne, Deka Board of Management member with responsibility for asset management.
The overall transaction volume of Deka Immobilien in 2024 amounted to EUR 1.7 billion, of which EUR 820 million was for 9 purchases and EUR 860 million was for 22 sales. In 2024, Deka was able to secure two office properties in international core markets — one in Vancouver and one in Sydney — thus demonstrating its ability to seize global purchasing opportunities when they arise.
"The assets acquired in 2024 contribute to the stability of the fund's performance through the favourable purchase conditions. We aim to continue buying real estate under different market conditions in 2025", adds Danne. The sales were not driven by liquidity, but mainly comprised properties that were no longer in line with Deka's strategy and could be sold in a performance-neutral manner or at a profit as part of portfolio optimisation.
In a difficult market environment, real estate assets managed by Deka rose to EUR 51 billion by the end of the year. Deka's retail funds recorded net sales totalling EUR 350 million in 2024. In institutional business, Deka Immobilien's net sales amounted to minus EUR 330 million. The asset management volume of the business unit amounted to EUR 55.2 billion by the end of 2024. Deka Immobilien expects returns on its large, established open-ended real estate funds aimed at private investors to be between around two and three percent in 2025.
Leasing performance remained at a high level in 2024 due to the conclusion of lease agreements with a net annual rental volume of EUR 400 million. The occupancy rate in the overall portfolio was just under 94 percent at the end of 2024, supporting the stable performance of the funds.
