Swiss Life AM sees strong potential in German living

Swiss Life Asset Managers sees strong potential in the German living investments and is planning to expand its 4L (living, logistics, life sciences, and light industrial) across Europe.

Holger Matheis and Per Erikson

CRE Media Europe met at Expo Real with Holger Matheis, CEO Germany, and Per Erikson, Group CIO, who shared their views on the market's state and Swiss Life AM’s plans.
Matheis noted strong opportunities in the residential market, with foreign institutional investors showing significant interest in German living investments. He anticipated expanding their existing co-living JV model in London across Europe, adding that Swiss Life AM aims to collaborate with European partners for residential investments.
In light industrial, their new "Real Estate Fund Germany 5" is targeting properties with a yield of 5% or higher. Matheis said that the logistics market remains stable with high demand and low vacancy rates, and Swiss Life has managed to attract considerable investor interest for its new, fully ESG-compliant and decarbonized buildings.
While life science alone is a relatively small area, they see potential in combining it with technology and light industrial applications. 
Matheis agrees with the positive sentiment at Expo Real, noting a "stepping sideways up" trend, boosted by increasing transaction figures and rents. He observed that institutional investors are returning to explore real estate opportunities, but now prefer smaller, independent ventures to maintain greater control over their decisions. 
Per Erikson added that their yield forecasts remain stable, anticipating that value creation will increasingly depend on active asset management and strategic loan management rather than yield curve movements. He believes the market is recovering, with some who previously paused real estate investments now re-engaging, indicating a positive shift, albeit at a slower pace than initially predicted.
Looking ahead, priorities include expanding in the living sector through potential JVs, specifically in micro-living and co-living. Two long-term development projects are underway in Düsseldorf (1,500 units) and Frankfurt (500,000 m2 GLA). Additionally, Swiss Life AM will continue their involvement in life sciences due to its stability and long-term potential, added Matheis.
Swiss Life AM aims to maintain a growth rate of around 10% as an asset manager and is actively marketing five funds and an eleventh fund in the Nordic region focused on new residential and European solutions, concluded Erikson.

Branislav Pekić