Union Investment buys Italian shopping centre for EUR 143m

Hamburg-based Union Investment Real Estate has acquired the Monza shopping centre in Northern Italy for its UniImmo: Deutschland open-ended real estate fund. The investor purchased the property from ImmobiliarEuropea for around EUR 143 mln. CB Richard Ellis advised the vendor while Jones Lang La Salle acted for the buyer.

This is Union Investment’s second investment in Italy. In 2007, the company purchased Centro Commerciale Carrefour di Pavia, a 10,000-m² mall in Northern Italy for its UniImmo: Europa open-ended real estate fund.

'With this acquisition, we are continuing our strategy of portfolio diversification through the addition of shopping centres,' said management board member Frank Billand. 'This purchase gives us a fully-leased property and an anchor tenant, Auchan, with a 15-year lease term, ensuring a steady rental revenue stream for investors.'

Opened in August 2008, the shopping centre has around 28,000 m² of rental space let to Auchan, Hilfiger, H&M and Douglas. Besides the shopping centre, the development also includes a hotel, offices, and a public service hall. The hotel and the offices will be completed in automn 2009.

Union Investment’s portfolio currently comprises 21 shopping centres representing an investment volume of around EUR 3 bn.