Union Investment has acquired the first two properties in Germany for its recently launched UniInstitutional German Real Estate open-ended fund.
Union Investment has acquired the first two properties in Germany for its recently launched UniInstitutional German Real Estate open-ended fund.
The assets, located in Darmstadt and Frankfurt am Main, reflect the fund's strategy to focus on smaller properties in Germany worth between €15 mln and €50 mln.
In Darmstadt, the fund has bought the Space 20 fully let office property from a unit of Strabag Real Estate. Completed in 2012, the asset offers 7,315 m2 of rental space and is multi-let.
Colliers Frankfurt advised Strabag Real Estate on the transaction.
The Frankfurt addition is a centrally located office building near Frankfurt's main railway station. Finished in 2006 and comprising a total of 16,131 m2 of office and retail space, the building is fully let on long-term leases. The main tenant is Deutsche Bahn and the vendor is TMW Pramerica Property Investment.
Jones Lang LaSalle advised Union Investment on the deal.
UniInstitutional German Real Estate was launched in October 2012 to meet the investment needs of banks, churches and foundations. The fund aims for broad diversification in terms of usage and region, Union said.
'We are looking to make purchases for the fund in mid-sized German towns. These often have the advantage of higher initial returns,' said Christoph Schumacher, a member of the management team at Union Investment Institutional Property.
