IntReal launches 14 new funds in Q1 2020
Third party AIFM IntReal International Real Estate Kapitalverwaltungsgesellschaft (IntReal) launched a total of 14 new funds in the first quarter of 2020 and now administers 175 funds.
With 72 new properties added, the number of properties under administration rose from 1,331 (Q4 2019) to 1,403. The total volume of assets under administration (AuA) grew by EUR2.2 billion from EUR31.1 billion to a total of EUR33.3 billion. IntReal hired 20 new employees in Q1, bringing its total number of employees to 310.
Michael Schneider, Managing Director of IntReal, says: “IntReal posted a strong first quarter – despite the foreseeable and perceptible effects of the coronavirus crisis in March. Due to the pandemic, we generally anticipate stagnating figures in the second quarter, but we also see a possibility that the property asset class could maintain or even increase its importance in the investment world of both private and institutional investors in the crisis and afterwards. We are currently benefiting from the systematic expansion of our IT infrastructure, which allows us to remain fully operational even in times of social distancing and to position ourselves optimally with our fund partners now and in the future.”
Partner Funds segment grows by EUR1.5 billion, AIF Administration Services by EUR0.5 billion The company’s growth breaks down as follows: The Partner Funds segment for national and international asset managers grew by more than EUR1.5 billion to EUR20.1 billion in the first quarter of 2020. As such, IntReal achieved half of the growth generated in 2019 as a whole as at 31 March 2020 already. Accounting for approximately 60 per cent of total AuA, Partner Funds is still the most important of the administration specialist’s segments.
AIF Administration Services also saw strong demand in the first quarter. In this segment, IntReal takes on all back-office activities for other alternative investment fund managers (AIFMs), enabling them to increase their efficiency in an environment of rising regulatory costs. “The current crisis has shown that outsourcing activities to a large and efficient third-party AIFM makes an important contribution to the stability of a company’s own business,” says Michael Schneider.
This segment grew by EUR0.5 billion to EUR13.2 billion in the first quarter. The growth generated in the first few months of 2020 was accompanied by the recruitment of 20 new fund specialists. In total, the IntReal had 310 employees as of 31 March 2020. As well as expanding its IT, the third-party AIFM also established the new Treasury department as a longterm response to the company’s general growth and the additional requirements arising from the strong growth of the open-ended mutual property funds administered by IntReal.