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The European real estate industry is in the midst of a process of consolidation and concentration, according to Daniel Voigt, partner at international law firm CMS Hasche Sigle.

Voigt attributed the development partly to the implementation of the Alternative Investment Fund Managers Directive (AIFMD). ‘It’s a key driver in this process,’ he noted during an interview at EXPO REAL. ‘M&A activity within the European asset management sector has been at an all-time peak and the AIFMD has definitely played a role in this process.’

In recent weeks, German fund management specialist iii-investment was acquired by Paris-based BNP Paribas Real Estate and Commerz Real has spun off its spezialfonds activities for institutional investors to London-based Internos Global Advisors. More M&A is in the pipeline, Voigt predicted. ‘The impact of AIFMD goes well beyond implementing legal technicalities and has the potential to reshape the industry. To some extent, it has already done so. We’re also seeing internal consolidation to achieve economies of scale. This is less visible in the market, but we know that market participants are looking into the options or are already pursuing them.’