The History of the Fund: A Retrospective of Turbulent Decades

A video journey through time

Die Geschichte des Fonds: Eine Zeitreise durch vier Jahrzehnte

1972

The Success Story Begins

07 April 1972: hausInvest issues its first shares. In less than six months, around 1.5 million units worth the equivalent of 36.3 million euros are placed. The fund assets at the end of the first year come to 53 million euros, the number of investors stands at 750. Security-driven and profitable at the same time, this open-ended real estate fund invests in commercial real estate while letting a broad-based investor constituency participate in its performance. This remains true to this day.

1975

For investors continue to favour the classic approach.

In Germany, the number of open-ended real estate funds rises to seven, increasing the product diversity even though few savers take note. Instead, they prefer to invest their money into stocks or deposit them into savings accounts. Meanwhile, the fund volume of hausInvest keeps growing steadily right from the start.

1978

Brisk Growth in a Niche Market

The interest rate is very low, and both housing construction policy and economic policy measures stimulate the demand for property. In mid-1977, hausInvest share sales begin to skyrocket. The fund collects a total of 32 million euros, a quite impressive inflow. The fund volume now totals 113 million euros. And yet German open-ended real estate funds remain a niche product.

1983

A Trend toward Proprietary Projects

Following three years of serious recession, the economy achieves the turnaround – its momentum is propelled by the building industry. In 1983, hausInvest achieved its best-ever sales results since the fund launch. A cash inflow of approximately 85 million euros (previous year: 13 million euros) opens up new investment opportunities for the fund management. Since many of the already completed properties manifest building defects and the corresponding impact on earnings, the fund management increasingly embraces the idea of developing proprietary fund projects for hausInvest. The fund assets rise by approximately 93 million euros to a total of 294 million euros.

1985

The number of assets added to the portfolio and of construction projects climb to a new all-time high.

The situation on the construction market is favourable: hausInvest continues the development of proprietary projects as initiated in previous years. Acquisitions and asset appreciation raise the value of the fund properties by 47 million euros to a total of 274 million euros, with another 26 million euros earmarked for construction work contracts and one property purchase. This implies a new all-time high in terms of real estate added to the portfolio and in construction projects. The total fund assets in an amount of 397 million euros break down into 11.6 million shares outstanding.

1988

Real Estate Assets up by 50 Percent

There is no lull in investor interest in hausInvest: The cash inflow remains on a high level. During the 1987/1988 financial year, the real estate assets grow by 50 percent to 481 million euros, actually hitting 510 million euros by the end of the year – the equivalent of one billion Deutschmark. The fund assets cross the mark of 765 million euros or 1.5 billion Deutschmark for the first time.

1993

hausInvest Picking up Steam

hausInvest keeps gathering momentum: The demand for shares soars, and so does the fund volume. On 01 July 1993, the fund management and the fund assets in an amount equalling 991 million euros, including 44 properties, are transferred to the company Commerz Grundbesitz Investmentgesellschaft (CGI) which was formed the previous year, and which is the forerunner of the present Commerz Real Investmentgesellschaft. By the end of the 1993/1994 financial year, the fund assets had doubled, totalling the equivalent of 1.77 billion euros. That year, the open-ended property fund collects 790 million euros, up from 123 million euros the year before.

1995

Maturing into a True European

Europe keeps moving closer together – hausInvest is developing into a true European, and setting up its foundation accordingly. It transacts its first acquisition outside Germany in 1995 by purchasing the Milton & Shire House office property in the northern part of the City of London The years thereafter see acquisitions in the Netherlands, France, Italy, Sweden, Austria, Portugal, Belgium and Spain. The open-ended property fund positions itself on a broader basis, and thus makes itself less dependent on the economic fluctuations in one region or another. The investment focus remains squarely on the high quality of the properties.

1997

First Acquisitions in Portugal and France

hausInvest acquires its first Portuguese property in a prime inner city location in Lisbon. "Armazèns do Chiado," a modern shopping centre featuring restaurants and a hotel in addition to the retail units, is developed behind a historic façade. That same financial year, another property acquisition marks the fund's entry on the French market.

2000

Crossing the Mark of Five Billion Euros

During the 2000/2001 financial year, the fund volume of hausInvest crosses the mark of 5.1 billion euros, the equivalent of ten billion Deutschmark. More than 280,000 investors have put their faith in the Fund. With sentiment on the stock markets riding high through the fall of 2000, the real estate fund sector suffers in cash outflows, in some cases on a massive scale. Nonetheless, hausInvest reports the second-highest net cash inflow of all open-ended property funds at 334 million euros (down from 496 million euros the previous financial year). Orio Center in Bergamo becomes the first retail property to be acquired in Italy.

2001

First hausInvest Asset in Spain

In the wake of the boom year 2000, West German real estate markets experienced a modest downturn during the year's first six months. The pace of the general economic slowdown quickens considerably after the attacks of 11 September 2001. In the Spanish cities of Madrid and Barcelona, the supply in modern office accommodation for large-scale occupiers still lags behind tenant demand, despite a high number of completions. hausInvest develops its first Spanish property in Madrid – an office complex with a gross lettable area of around 30,000 square metres.

2002

Entering the Belgian Market

The two-wing building complex "City Atrium" becomes the first office scheme that hausInvest acquires in Belgium. All restrictions on global investments by German real estate funds are lifted.

2003

hausInvest Heads Overseas

hausInvest global – the little brother of hausInvest – is created. To make it easier to tell the hausInvest siblings apart, the extension "europa" is added to the name of the original fund. As its name suggests, the hausInvest global fund invests worldwide, and combines the stable performance of its European assets with the dynamic growth in Asia and North America.

2004

Mega Shopping Centre Becomes Biggest-Ever Deal

hausInvest europa breaks another record by acquiring a "Westfield" project development in London that becomes a highlight in the Fund's portfolio. The investment totals two billion euros. This exceeds anything a German open-ended property fund has ever committed in an investment in the United Kingdom. The largest downtown shopping centre in Europe opens for business in 2008, and has attracted a bigger crowd every year since.

2006

Real Estate "Oscar" Goes to hausInvest

In addition to office properties and shopping centres, the hausInvest europa portfolio also includes hotels. For instance, the Neo-Gothic mansion "Villa Speyer" in Frankfurt is turned into the five-star hotel "Villa Kennedy." A special gem: The historic building fabric of the edifice is harmoniously integrated into the three new wings of the complex. In recognition of this amazing amalgam of tradition and modernity, Villa Kennedy receives the MIPIM Award, the property industry's equivalent to the Academy Awards, that same year.

2007

Best Open-Ended Property Fund Targeting the European Market

hausInvest europa accomplishes the market entry in Luxembourg by acquiring several office project developments. That same year, the fund wins the coveted Scope Award as Best Open-Ended European Real Estate Fund for the first time. It marks the onset of an impressive series: hausInvest europa keeps winning the award in 2008 and 2009 – meaning three times in a row.

2008

Logistics Assets to Diversify Fund Portfolio

Globalisation is driven by logistics – and vice versa. The fund management acquires the first logistics property for hausInvest europa. It is a distribution centre located in Harlow, 15 kilometres north of the London Orbital motorway. As a result, the portfolio is further diversified in regard to use-type sectors. That same year saw the grand opening of the "Westfield" mega mall in London, which exceeded the anyway high expectations from the start, and substantially so.

2009

Taking the Award for the Third Time in a Row

The office park Swing Life Science Center in Helsinki becomes the first hausInvest europa property in Finland. The market entry in this Northern European country helped to diversify the fund's asset portfolio even further by expanding the geographic spread and raising the share of the Nordics. For the third time in as many years, the probity of hausInvest europa sways the minds of the Scope jury members, as the fund follows up on the 2007 and 2008 trophies by taking the 2009 Award, too, as best open-ended property fund targeting the European market.

2010

Parallel Funds Merging to Form hausInvest

Even during the financial crisis, hausInvest europa and hausInvest global realised positive returns on investment.* Seeking to position itself for the future, the fund returns to its roots: The two funds are merged in fall. The merger creates one of the largest open-ended real estate fund in Europe with a fund volume of more than eleven billion euros. Its new name is quite familiar: hausInvest. Under the current investment strategy, the fund invests no less than 85 percent of its capital in Europe. The fund invests up to 15 percent of its capital in fast-growing markets worldwide.

* Calculated according to the BVI method (excluding up-front fee, assuming immediate reinvestment of the distribution). Past performance is not a guide to future performance.

2011

Scope attests a high quality.

Even during economically turbulent times, hausInvest proudly reported a net cash inflow of approximately 157 million euros at the end of the first semester of the 2011/2012 financial year. This reflects the great faith that investors and sales partners have. Again, the Scope rating agency awards hausInvest an A rating for high quality.

2012

Happy birthday, hausInvest!

hausInvest celebrates its milestone anniversary with an impressive track record: 40 years of positive returns on investment*. Such a high degree of continuity and consistency can only be explained by the fund's conservative investment strategy and its active portfolio and asset management. More than 450,000 investors put their faith in this open-ended property fund and use it as basic investment in their capital-building schemes. At the same time, hausInvest is well positioned for the future. Befitting its anniversary, the excellent Scope Rating in May 2012 reconfirmed the fact once more.**

* Calculated according to the BVI method (excluding up-front fee, assuming immediate reinvestment of the distribution). Past performance is not a guide to future performance.
** For more details, go to www.hausInvest.de

2013

Lawmakers Back Open-Ended Real Estate Funds

New legal provisions support the medium to long-term character of open-ended property funds by introducing a minimum holding period and a notice period. This enhances the planning certainty, increases the fund stability, and is therefore in the best interest of the investors.

hausInvest is an indispensable component in any portfolio!

2014

hausInvest Re-invests in the United States

With the acquisition of the retail asset 800 Lincoln Road in Miami/Florida, hausInvest returns to the US real estate market after an absence of seven years. Lincoln Road counts among the few pedestrian precincts that exist in the United States, and is equally popular among tourists and locals. Many international brands opened their flagship stores along this prime high-street pitch. With this property development, the fund benefits from the high demand for space among national and international retailers, and from the rental growth on location.

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