German institutional investors struggle to bridge gap between theory and reality in real estate asset management.
In Germany, institutional investors are figuring out how much of their money should go into real estate and how to manage those investments. A theoretical model suggests that adding German real estate to investment portfolios can help reduce risks. However, a survey of German life insurance companies and pension funds reveals that in reality, there's a big difference between what should be done and what is actually happening in real estate asset management.