Hello Bob,

Recently some news was headlined in the financial press which detailed the woes that a large number of German investors have known with a couple of their "risk free" REIT Funds. The losses were substancial and some of these funds were being unwound, or repuchased by the bank's other branches in order to stave off a Northern Rock type run on these funds.

I find this incident surprising in light of what you say above (and which I have read independantly) which suggests that some big operators are now investing hundreds of millions of euros in German Real Estate.

Why haven't investments on so large a scale pushed up German property prices, making these funds profitable for their subscribers?

Neustria