REAL ESTATE FUNDS IN ACCORDING WITH THE
GERMAN INVESTMENT ACT
Review of the year 2008
At the end of the year 2008 grundbesitz global (share class RC) achieved an annual
performance of 5.0%㧝 . According to the performance statistics of BVI in the one-year, three-
year and five-year periods for all open-end real estate funds, grundbesitz global ranked
among the best performing funds.
As at the end of the year, the fund held 53 properties with a market value of €3,167 mn. The
portfolio is composed of soundly-performing properties with a broad tenant mix and an
occupancy ratio of around 95%. In addition to office real estate, the fund also invests in hotels,
retail, logistic and residential properties. Geographically, the fund is broadly diversified with
investments in central locations in the growth market of Asia (21.1%), the established markets
of North America (20.5%) and Europe (58.4%).
The fund assets stood at around €2,391 mn at the end of the year. The liquidity stood at
around €448 mn (18.7% incl. 5% minimum liquidity of €120 mn). The leverage based on the
market value of the properties stood at around 37.4%.
The lower interest level enabled to raise additional favorable borrowing for the profit of the
investors, as the financing costs are below the income out of the real estate investments.
Therefore the fund management further optimized the post-tax returns in the consequence of
existing long term loan agreements.
In 2008 four real estate transactions were effected. The fund acquired the Xiwang office tower
in the growth [location] region of China and the completely rented Nikko building in Tokyo,
Japan, located close to the largest railway station in the world. Both properties are of high
With the purchase of the section E the final construction section of the office real estate
Kopernik in Warsaw (Poland) was acquired.
Through active asset management employed by RREEF and the positive market situation, the
Daewoo Securities building in Seoul, Korea, originally acquired in