Deka-ImmobilienGlobal

WSP commentary

Draft commentary, machine-generated from the fund's monthly factsheet dated 30.06.2026; key information document (PRIIPs), not yet reviewed by WSP.

Investment rationale

Deka-ImmobilienGlobal is an open-ended real estate fund designed to generate regular income from rents and interest and to deliver continuous capital appreciation through rising property values. It is classified as a German AIF-Sondervermögen with a summary risk indicator of 2 and a recommended holding period of 5 years; the documents also state a minimum holding period of 24 months and that the fund may be unsuitable for investors who cannot invest for at least three to five years. The fund targets retail clients, professional clients and eligible counterparties seeking general wealth accumulation or optimisation with a medium- to long-term horizon, and it is intended for investors with basic knowledge and/or experience in financial products. Its distinct role is exposure to a globally diversified portfolio of commercial property, with investments in 17 countries and a strong focus on office assets, while also incorporating sustainability features in property selection and management.

Investment strategy

The stated objective is to earn regular income from rent and interest and to achieve continuous value growth through positive development in real estate market values, while seeking the highest possible return consistent with appropriate risk for the asset class. The fund invests predominantly in commercial real estate, including office, retail, hotel and logistics properties, mainly in countries outside the European Economic Area; it may also acquire property developments. As of 30.06.2026, the portfolio comprised 43 properties, with sector weights of 81.6% office, 5.9% hotel, 4.9% mixed-use, 4.4% retail/gastronomy and 3.2% logistics/storage, and regional weights of 47.9% Europe, 30.7% North and South America and 21.4% Asia/Pacific. The fund may borrow up to 30% of the market value of the properties, may hold up to 49% of fund assets in liquid investments, and may use derivatives for hedging purposes such as currency and interest-rate risk; income is distributed, with distribution around 7 January.

Investment philosophy

• The fund invests globally in commercial real estate in attractive locations, with the portfolio mixed by location, size and use type and focused on office, retail, hotel and logistics properties.

• Property selection and management also consider and promote ecological and/or social characteristics; examples given include reducing property-related CO2 emissions, improving energy consumption, applying coal exclusion and UN Global Compact criteria in liquidity investments, and aiming to minimise negative impacts on people and the environment.

• As of 30.06.2026, the portfolio held 43 properties across 17 countries, with current regional exposure led by Europe at 47.9%, followed by North and South America at 30.7% and Asia/Pacific at 21.4%; the largest country weights shown are Australia 16.8%, USA 16.6%, Germany 10.9%, the Netherlands 9.2% and the UK 8.9%.

• Current sector positioning is heavily office-led at 81.6% of fund assets, with smaller allocations to hotel, mixed-use, retail/gastronomy and logistics/storage.

• Risk management tools and limits stated in the documents include borrowing capped at 30% of property market values, liquid assets up to 49% of fund assets, derivatives permitted for hedging currency and interest-rate risks, and strategic currency hedging for non-euro exposures.

The asset manager

The fund is managed by Deka Immobilien Investment GmbH, which is the management company named in both the quarterly report and the key information document. The company belongs to the Deka Group. The custodian is DekaBank Deutsche Girozentrale, Frankfurt. The documents identify the fund as Deka-ImmobilienGlobal, launched on 28.10.2002, with EUR as base currency and a financial year ending on 30 September.

Performance analysis

Source: manager factsheet dated 30 June 2026. The manager commentary in the quarterly report focuses on leasing and transaction activity rather than attributing returns to specific markets or factors. During April to June 2026, the fund completed 43 lease contracts covering about 50,000 square metres and rental volume of around EUR 24 million, including 24 contracts with new tenants; highlighted lettings included about 17,000 square metres in Amsterdam's Exchange / Bank to Corendon Hotels & Resorts and about 2,100 square metres for around eight years at 1999 K Street in Washington, D.C. to an American commercial law firm. On transactions, the fund acquired the newly built and fully let VDH Cooling logistics property in Dutch Fresh Port, Ridderkerk, with total rental area of around 29,700 square metres, and made no disposals in the second quarter.

Strengths

The fund is presented as the largest international real estate fund in the German market, with fund volume above EUR 6 billion and a globally diversified property portfolio spanning 17 countries. The documents state that Scope Analysis again confirmed it as having the best real estate portfolio among global products, and separately note it achieved the best rating among global funds. Diversification is a central distinguishing feature, with properties rented to companies from various sectors and spread across countries, locations, tenants and usage types to cushion regional market fluctuations. Sustainability is also embedded in the property approach, with 98.4% of fund properties sustainably certified as of 30.06.2026.

Risks

The key information document assigns the fund to summary risk class 2 on a scale of 1 to 7, based on a 5-year holding assumption, and notes that early redemption can materially change realised risk. The fund-specific risks named include property risks that can reduce property values or current income, such as rental default and occupancy risk; the reported letting ratio was 92.11% on the BVI method. The documents also identify interest-rate risk on liquid investments and borrowing, residual foreign-currency loss risk on investments outside euro countries despite strategic hedging, and liquidity risk from statutory redemption notice periods, a 24-month minimum holding period, a 12-month notice period for redemptions, and the possibility of redemption suspension if liquid assets are insufficient. Additional risks named are losses from operational failures, fraud or natural events, potential losses if the custodian fails, limited tax recognition of losses on sale because only 20% are tax-effective under the 80% partial tax exemption, and the fact that ESG criteria may change over time and may differ from an investor's individual sustainability preferences.