Union Investment Navigates Prolonged Crisis in Open Real Estate Funds as Reinke Prepares to Step Down
Frankfurt – Union Investment, one of Germany’s leading asset managers, is contending with ongoing challenges in the open real estate fund sector, even as it reports record assets under management and prepares for a leadership transition. The situation overshadows the planned departure of long-time CEO Hans-Joachim Reinke in April 2026, with André Haagmann set to take the helm.
Outflows and Market Stabilization
According to Union Investment board member Frank Engels, outflows from open real estate funds, popular with private investors, are continuing. “We are still seeing outflows,” Engels stated at the company’s balance sheet press conference in Frankfurt. However, a slow stabilization is anticipated in the current year, with increasing demand from institutional investors for commercial real estate. Engels noted a stabilizing trend in the U.S. Office real estate market, driven by companies recalling employees to offices.
The German real estate fund industry experienced net outflows of €7.7 billion in the past year, according to the BVI industry association. The twelve-month notice period associated with these products contributes to a delayed impact of investor exits, potentially creating a cycle of outflows and declining fund values, as acknowledged by Engels.
Liquidity and Fund Performance
Engels emphasized that Union funds have maintained liquidity, having sold approximately €5.3 billion worth of commercial properties – roughly 10% of the original portfolio – over the past two years.
Union Investment has faced scrutiny following a 16.7% devaluation of the ZBI Wohnen fund in July 2025, acquired with the ZBI Zentral Boden Group in 2017. The Wertgrund Wohnselect fund suspended investor payouts earlier this year.
“Although we are not experiencing the most severe crisis, we are experiencing the longest crisis in open-ended real estate funds,” Engels said. He contrasted the current situation with the global financial crisis, where numerous funds were frozen, and investors faced lengthy delays in recovering their investments. The introduction of a twelve-month notice period aims to prevent emergency sales.
Record Assets Under Management and Leadership Transition
Despite the challenges in the real estate sector, Union Investment reported record assets under management of €534.6 billion at the end of 2025, an increase of approximately €30 billion year-over-year. Pre-tax profit reached €1.185 billion, slightly below the previous year’s figure.
The profits largely benefit DZ Bank, which is owned by German cooperative banks. Reinke’s 15-year tenure as CEO has seen Union Investment contribute around 93% of the dividends paid out by DZ Bank in recent years. He will be succeeded by André Haagmann, currently responsible for business with institutional clients.