German public sector pension fund Versorgungsanstalt des Bundes und der Länder (VBL) has announced it is restructuring its €7bn residential real estate portfolio by transferring a significant portion of its directly held assets into a fund structure.

In a statement, VBL confirmed that residential assets with a book value of more than €2bn will be transferred into the ‘Via Nova Wohnen’ fund, which forms part of its broader housing portfolio.

Despite the move, the pension institution stressed that the transaction is not a sale but an organisational restructuring, with VBL remaining the economic owner through its fund units and retaining full strategic control.

The move is intended to strengthen the long-term safeguarding and development of the portfolio, while enabling more efficient management and supporting future investment in new housing supply.

VBL said the structure would also help it meet increasing regulatory and environmental demands, including its target of achieving greenhouse gas neutrality across its investments by 2050.

Renovation, modernisation and the gradual decarbonisation of the housing stock are key priorities under the new structure, with the fund designed to facilitate bundled, long-term investment.

VBL has appointed Union Investment as the capital management company responsible for the administration of the fund and ensuring the necessary regulatory framework.

Swiss Life Asset Managers will act as portfolio and asset manager, overseeing the structure and bringing experience in managing large-scale residential portfolios.
Its digital real estate platform will support the planning and monitoring of investments, ESG measures and overall portfolio development.

The pension fund emphasised that the changes will not affect tenants. Existing rental agreements, local property management and points of contact will remain unchanged, with the restructuring limited to back-end organisational arrangements.

VBL board member, Dr Michael Leinwand, said: “With this strategic realignment, we are laying the foundation to responsibly develop our housing portfolio over the long term. Our goal is to future-proof our buildings, reliably secure housing, and address the challenges facing the portfolio in a structured and sustainable way.”

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