Union Investment has gone back to investing in US real estate following a three-year hiatus.
The manager, investing on behalf of its open-ended Unilmmo Europa real estate fund, has acquired a fully-leased 2,800sqm retail property at 57-65 East Oak Street in Chicago for an undisclosed sum.
Matthew Scholl, executive director and head of investment management Americas at Union Investment, said: “Over the last couple of years, we have found it challenging to invest in the US market due to exorbitant hedging costs and travel limitations caused by the Covid-19 Pandemic.
“While the US team has remained active throughout this period, we are now able to acquire once more and look forward to realizing future opportunities in this very dynamic market.”
Henrike Waldburg, the head of investment management global at Union Investment Real Estate, said: “Our overseas real estate holdings are set to grow further because global investments are an important element in diversifying our portfolio and providing protection against future crises.”
East Oak Street is the number one destination in Chicago for luxury goods and fashion, Waldburg said.
”High-profile tenants include brands such as Hermès, Prada, Giorgio Armani and Dior. Due to the demand for space, vacancies are historically low and rents are stable.”
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