The “Deutsche Investment – Büro II” open-ended special AIF was launched as a financial product in accordance with Art. 6 of the Sustainable Finance Disclosure Regulation (OffV). Restructuring the separate asset pool into an Article-8 fund provides Deutsche Investment in every asset class it covers with at least one investment opportunity that seeks to meet environmental and/or social characteristics or that strives to implement environmental objectives and/or social objectives.
The investment strategy of the “Deutsche Investment – Büro II” institutional fund now takes a total of 18 different sustainability factors into account whose compliance ratios—based on the ESG scoring model customised for the office asset class—are measured and assessed. To this end, sustainability characteristics were added to all acquisition, management and letting processes that Deutsche Investment employs. Moreover, the regional allocation of investments was adjusted: To at least 30 percent, the portfolio is supposed to consist of properties located in German Class A cities (the “Big Seven”) and their metro regions, and to maximally 70 percent of assets in fast-growth cities. At the same time, the selective addition of manage-to-core properties is an option. “The manage-to-green approach within our in-house value chain, especially in the service modules of asset management, property management and facility management but also in property development, provides us with an excellent basis for exploiting the quality of the acquired properties in the longer term. This includes the dynamic adjustment to changing tenant needs and to external parameters, such as climate change and the regulatory framework. The fields of action we focus on include lettings, the optimisation of the building fabric, and the digitisation of buildings. We identify and assess the opportunities for such upgrades as early as the acquisition process,” explained Daniel Schreiner, Principal ESG Asset Management at Deutsche Investment Kapitalverwaltung AG.
The total investment volume of the “Deutsche Investment – Büro II” is projected to amount to EUR 300 million. The rent revenues of the real estate portfolio are to be generated to 70% or more from office units. At the moment, the separate asset pool is in the investment phase.