Union Investment was again one of the most active players in the European real estate market in 2009. The Hamburg-based property fund manager acquired properties worth EUR 1.6 bn over the past 12 months. A total of 18 properties and projects were purchased for its six open-ended retail and special funds. 'We are very pleased with investment results, given that our focus on core properties in prime locations means that investment potential is limited in many markets,' said Dr. Reinhard Kutscher, chairman of the Management Board of Union Investment Real Estate.
Union Investment was again one of the most active players in the European real estate market in 2009. The Hamburg-based property fund manager acquired properties worth EUR 1.6 bn over the past 12 months. A total of 18 properties and projects were purchased for its six open-ended retail and special funds. 'We are very pleased with investment results, given that our focus on core properties in prime locations means that investment potential is limited in many markets,' said Dr. Reinhard Kutscher, chairman of the Management Board of Union Investment Real Estate.
With cash inflows of some EUR 2.63 bn, Union Investment's open-ended real estate funds, which are marketed via the Volksbanken Raiffeisenbanken banking network, achieved their best sales since 2003. The company also outperformed the rest of the sector.
As announced earlier, Union Investment ranked third in the PropertyEU ranking of top investment deals for 2009. Société Nationale Immobilière tops the list following the acquisition of a residential portfolio from fellow French company Icade for EUR 2 bn. It is followed by Global Infrastructure Partners which acquired Gatwick Airport from BAA (Ferrovial) for EUR 1.67 bn.
As a result of last year's acquisitions, Union Investment's holdings in over 26 markets in Europe, the Americas and Asia are even more diversified, the fund manager said in a press release. Nine new office, hotel and retail properties were acquired in Germany for some EUR 500 mln, and a further nine properties worth around EUR 1.1 bn were purchased elsewhere in Europe. Major real estate acquisitions in 2009 included the Mercado shopping centre in Hamburg’s Altona district, the 'K' shopping centre in Kortrijk, Belgium, and the office properties A4C in Paris and 10 Gresham Street in London.
Union Investment has developed its own Sustainable Investment Check to assess the sustainability of potential investments, and has been using it since the beginning of 2009. Properties that fail to meet the standard are ruled out. 'Sustainability has become an established part of our investment strategy,' said Kutscher. 'The acquisitions we have made in recent years have enabled us to create a portfolio of properties with sustainability certificates that is currently worth around EUR 1.3 bn.'
