Union Investment trades assets for funds
Union Investment, on behalf of its funds, has bought a portfolio of four hotel development projects in Austria and sold a 22,000sqm office property in California to Irvine Company.
The €35.3bn manager said, through a forward purchase agreement, it has bought the Austrian hotel portfolio from benchmark.REAL Estate Development for an undisclosed sum.
Three hotels to be built in Dresden, Oberhausen, and Eschborn will be transferred to the holdings of open-ended real estate fund immofonds 1.
An additional planned hotel property in Freiburg im Breisgau is being acquired for special fund UII Hotel Nr. 1.
Prior to the acquisition, the immofonds 1 fund held three hotel properties in Vienna, Innsbruck and Dresden worth around €45m.
The portfolio of special fund UII Hotel Nr. 1 contains 13 hotel properties and development projects following the acquisition in Freiburg im Breisgau.
Union Investment said it sold the Paseo del Mar office property in San Diego to Irvine Company.
The manager said the asset, which currently has an occupancy rate of around 84%, was sold for more than its recent valuation.
Constructed in 2006, the office building was acquired by Union Investment in 2008 and held in its Unilmmo: Europa fund.