Union Investment has bought a retail park in Madrid and a commercial building in Brussels for its European core and core-plus real estate fund.

The manager has invested an undisclosed amount to buy the UII EuropeanM fund’s first two retail properties.

The manager has acquired the commercial building at Chaussée d’Ixelles 63–65 in Brussels. The building was completely redeveloped in 2017 and 2018 by the vendor, Redevco, and comprises 9,409sqm of rental space. The main tenant is discount fashion retailer Primark.

Union Investment has also bought the 10,580sqm On Plaza retail park near Madrid from a private investor. The property was built in 2019 and is fully-let.

The UII EuropeanM fund invests primarily in the four commercial use types of office, hotel, logistics and retail, focusing on midscale properties in European real estate markets.

The fund, which plans to build up a €1bn real estate portfolio, acquired two hotel projects in Poland in January to act as a seed portfolio for the fund.

The UII EuropeanM fund will invest in assets worth less than €100m with moderate rent levels and sustainable cash flows.

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