This Master Thesis has the aim to identify the investment patterns of German commercial real estate funds in Sweden. Questions of “when”, “how” and “why” they entered the Swedish market are answered. Also the local distribution of these investments is taken into consideration. The motives why they had and still have chosen the Swedish market are explained and compared with several former research papers about foreign investment motives. 19 interviews have been made with German real estate funds as well as Swedish advisor companies in order to answer these questions. The interviews with German funds have shown that they face several problems due to the German Investment Act. The main difficulties are the prohibition of the double layer structure, hierarchy problems and strict regulations concerning investment rules. Thus German funds were limited in their ability to make decisions. But the German Investment Act will change and liberalize the German funds. Thus real estate funds will have the possibility to compete with other investors for projects, which they could not do before. German funds entered the market, because it promised to be a growing and stable market. At the time when German funds entered Sweden, the real estate situation and economic position was better compared with the German business and real estate cycles. The funds were mainly driven by diversification and the high liquidity in Germany. Official statistics showed that diversified international portfolios performed better than national ones. Another point in the investigation is the development of the interest rate in Sweden. Forecasts predict an increasing interest rate and so highly leveraged investors are likely to leave the market. German funds instead can be 100% equity financed and so will win more market share in the next years.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- Background
- Purpose
- Method
- Limitations
- THEORY ABOUT INTERNATIONAL INVESTMENTS
- Theory about direct investments
- Concept of ownership
- Diversification
- Investment motives and problems
- Real Estate cycles
- Bubble theory
- REAL ESTATE FUNDS
- General definitions
- Forms of Funds
- Open-ended versus closed-ended funds
- Structure of German real estate funds
- Open-ended funds
- Closed-ended funds
- Laws and regulations
- Taxation rules
- Double tax agreement Germany-Sweden
- Mortgage rules
- Double layer structure
- Historical development in Germany
- Historical development in Sweden
- GERMANY
- General economic situation
- Real estate situation
- SWEDEN
- General economic situation
- Real estate situation
- FOREIGN INVESTMENTS IN SWEDEN
- International investments
- Motives and investments of international investors
- PATTERN OF GERMAN FUNDS
- Development of German investments in the years 2000-2007
- Types of German funds
- Type of properties and locations
- INVESTMENT MOTIVES
- Key factors for investment decisions
- German investment motives
- Investment strategy
- Risk
- Recent market trends
- HYPOTHESIS TESTING AND THEORETICAL EVALUATION
- Hypothesis testing
- Theory of property ownership
- Investment motives
- Bubble theory
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This Master Thesis aims to analyze the investment patterns of German commercial real estate funds in Sweden. The research delves into the questions of "when," "how," and "why" these funds entered the Swedish market, considering the geographical distribution of their investments. The study examines the reasons behind their choice of the Swedish market and compares these motives with previous research on foreign investment motivations. 19 interviews with German real estate funds and Swedish advisor companies were conducted to address these questions.
- Investment patterns of German commercial real estate funds in Sweden
- Motivations for German funds entering the Swedish market
- Comparison of investment motives with existing research
- Impact of the German Investment Act on German fund operations
- Analysis of real estate market conditions in Sweden and Germany
Zusammenfassung der Kapitel (Chapter Summaries)
- INTRODUCTION: This chapter introduces the thesis, outlining its background, purpose, methodology, and limitations.
- THEORY ABOUT INTERNATIONAL INVESTMENTS: This chapter discusses theoretical frameworks for understanding international investments, including direct investments, concepts of ownership, diversification, investment motives and problems, real estate cycles, and bubble theory.
- REAL ESTATE FUNDS: This chapter defines real estate funds and explores their different forms, open-ended versus closed-ended funds, and the structure of German real estate funds. It also analyzes the legal and regulatory framework governing German funds, including taxation rules, double tax agreements, mortgage rules, and the double layer structure.
- GERMANY: This chapter provides an overview of the general economic and real estate situation in Germany.
- SWEDEN: This chapter provides an overview of the general economic and real estate situation in Sweden.
- FOREIGN INVESTMENTS IN SWEDEN: This chapter discusses international investments in Sweden, including motives and investments of international investors.
- PATTERN OF GERMAN FUNDS: This chapter analyzes the development of German investments in Sweden between 2000 and 2007, examines the types of German funds involved, and explores the types of properties and locations targeted by these funds.
- INVESTMENT MOTIVES: This chapter focuses on the key factors influencing investment decisions, outlining the specific motivations of German funds, their investment strategy, risk assessment, and recent market trends.
- HYPOTHESIS TESTING AND THEORETICAL EVALUATION: This chapter tests the hypotheses generated in the study, evaluates the theoretical frameworks employed, and analyzes the theory of property ownership, investment motives, and bubble theory in relation to the findings.
Schlüsselwörter (Keywords)
The main keywords and focus topics of this thesis are: German commercial real estate funds, international investment motives, Swedish real estate market, German Investment Act, real estate cycles, diversification, and risk assessment.
- Citation du texte
- Master of Science Carolin Dörr (Auteur), 2008, German commercial Real Estate funds in Sweden, Munich, GRIN Verlag, https://www.grin.com/document/92399
