German pension fund builds out risk management system for global real estate
The Bavarian Pension Fund (BVK), Germany’s largest public-sector pension group, has enlisted the advisory help of INTREAL Solutions, a consultancy firm and subsidiary of third-party AIF manager INTREAL, on the development and implementation of a new risk management system for its global real estate portfolio.
BVK handles the business of 12 occupational and municipal pension plans and has €32.4 billion ($35 billion) of real estate investments under management, as of June 2022. The portfolio consists of a variety of properties, spread across five continents.
Under the mandate, INTREAL Solutions developed a comprehensive scoring model for specific types of use, and countries that uses a wide variety of indicators to monitor and control a global portfolio. In addition to standard risk indicators in the macroeconomic area, such as inflation, interest rate development or rates of rental growth and economic growth, it also appraises individual property risks and ESG risks