Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

MUNICH-Liquidity levels in German Open-Ended real estate funds have started to pick up recently, which could mean as much as €12 billion in new investments over the next two years if inflows continue as expected, says CB Richard Ellis. GOEFs currently hold around €18bn in cash or immediately liquid assets, which translates into up to €7.5 bilion more spending power.

But not all funds are in equally strong positions. Liquidity is especially high for three fund managers: Union Investment; DEKA--including WESTINVEST and Commerz Real--which between them have over €6 billion to spend immediately. Following the reopening of many funds in summer, net inflows to the sector were €326 million in August, according to the German Industry Assoc. (BVI). This is very encouraging, after net withdrawals in July of over €400 million, due to one-off redemptions from the newly-reopened funds CS EUROREAL and KanAm grundinvest.

Although some reopened funds continued to see net withdrawals in August, the scale was limited. In fact, some that only recently lifted suspensions such as SEB ImmoInvest and AXA Immoselect are already experiencing positive inflows again.