INTREAL increases its assets under administration by 21 Percent in 2022
IntReal International Real Estate Kapitalverwaltungsgesellschaft mbH (“INTREAL”), Germany’s leading third-party AIFM in the real estate sector, looks back on a successful 2022 financial year. The assets under administration (AuA) of the Hamburg-based fund administration specialist crossed the mark of 60 billion euros during the fourth quarter, and approximated 62.1 billion euros by year-end 2022. This implies an increase by c. 10.9 billion euros or about 21.3 percent compared to the figures reported at the end of the previous year. Following a strong opening quarter with an increase by 3.5 billion euros, the growth rate slowed somewhat as the year progressed, with 2.5 billion euros gained in Q2 and 2.0 billion euros in Q3. During the fourth quarter, however, the growth gathered momentum, eventually adding up to 2.9 billion euros.
The number of administrated funds increased by 25 during the reporting period and added up to 297 vehicles by 31 December 2022. Real estate under management increased by 372 properties since the end of the previous financial year, with 119 added during the fourth quarter alone. This brought the real estate inventory across all administrated funds up to a total of 2,459 properties by 31 December 2022.
The continued growth of INTREAL was matched by a proportionate expansion of human resources. In the course of the 2022 financial year, the company hired a total of 89 new employees. The number of people working in its three branch offices in Hamburg, Frankfurt and Luxembourg thus increased to 490.
Business Development of INTREAL Shows that Real Estate has Become an Established Asset Class
Michael Schneider, Managing Director at INTREAL, commented: “The business development of INTREAL within the turbulent market environment of 2022 indicates that real estate investments have evolved from an occasional add-on option into an established asset class for the portfolios of both institutional and private investors. Notwithstanding the keen sense of uncertainty on the markets and the general economic slowdown in the wake of the war in Ukraine, we are not seeing investors pull out of the real estate asset class. Rather, investors have come to appreciate real estate funds as assets that steadily generate predictable revenues even in a challenging economic environment. After the records set in previous years, it was to be expected that our growth dynamic would see a modest decline in 2022, especially due to the slowdown in buying transactions. But against the background of the general market developments, we have every reason to be content with the increases achieved. We are also confident of our ability to keep growing in the ongoing year because, together with our active fund partners, we can quickly adapt our funds and investment strategies to new market conditions and to the investor-side requirements these may trigger. A case in point would be the successful implementation of numerous ESG compliant funds products as Article-8 funds and Article-9 funds. Moreover, we spent the year 2022 growing our activities and customised client solutions in Luxembourg while also expanding our business model to include advisory services through INTREAL Solutions.
Partner Funds Division Growing Slightly Faster than AIFM Services
In the course of the 2022 financial year, the partner funds division showed a slightly faster pace of growth than the AIFM services division, and thus remains the largest business unit of INTREAL. By 31 December 2022, it had 33.7 billion euros in assets under administration (AuA) and accounted for around 54 percent of the total AuA of c. 62.1 billion euros. In its partner funds division, the third-party AIFM offers every kind of service relating to the launching and administrating of alternative investment funds (AIF) to asset managers and property developers who have no AIFM license of their own, among other clients. Compared to the figure at the end of the 2021 financial year, the business unit increased its AuA by c. 6.3 billion euros in 2022, with c. 1.3 billion euros added during the fourth quarter. The number of vehicles managed in the Partner Funds division increased by another 15 in 2022 to a current total of 160, three of them added during the last quarter.
For AIFM services, which is the second main business unit of INTREAL, the AuA total grew by c. 4.6 billion euros to c. 28.5 billion euros, in 2022, which equals around 46 percent of the total AuA of INTREAL. Here, the increase equalled 1.6 billion euros during the fourth quarter alone. In its AIFM services division, INTREAL provides services on behalf of other AIF management companies, among them complex administrative tasks like reporting, controlling (management accounting), fund accounting or equity investment management and risk management. The number of funds managed by the AIFM services unit went up by another ten in 2022 to now 137; two new funds were added to the total during the fourth quarter.
