The Development of German Open-Ended Real Estate Funds

Authors: Christian Focke

Start Page: 39
End Page: 56
Volume: 14
Issue Number: 1
Year: 2006
Publication: Journal of Real Estate Literature

Abstract: In Germany, open-ended real estate funds have faced the highest cash inflows in their
history turning them into a major player on the German market. At the same time, on the regulatory side, the ‘‘Fourth Financial Markets Promotion Act’’ significantly increased the possibilities for German funds to invest internationally. This paper examines the history, construction and characteristics of German open-ended real estate funds. They are compared to other forms of indirect real estate investment and the most important improvements brought about by the Fourth Financial Markets Promotion Act are described. Fund managers in the future will increase the percentage of their portfolios invested abroad, increasing the importance of German open-ended
real estate funds.