French investment in Germany totalled almost €1.5bn in the first half of the year, compared to €1.4bn during the same period last year. Hence, French investments accounted for 10% of the total €13.5bn of foreign capital invested in Germany. While the volume is almost similar to last year, activity is clearly increasing. Indeed, last year the volumes were inflated by the signature of a few large portfolios, including the acquisition of a hotel portfolio by Foncière des Régions and the acquisition by Primonial of a large care home portfolio.
Whereas their activity used to be mostly concentrated on retail and office asset classes, French investors are now expanding their activity to alternative assets. Mirroring investment into France, the hunt for higher yields and income stream producing assets is pushing investors towards diversification.
Asset Management companies have been particularly active although all types of investors have a growing presence in Germany. The top five investors in terms of investment volume since the beginning of 2016 are Primonial, Foncière des Régions, Axa Investment Managers, BNP Paribas Real Estate Investment Management and AEW Europe.
Source : Savills