Union Investment buys two office buildings in Munich

Hamburg-based Union Investment Real Estate has acquired two office buildings in Munich for its UniImmo: Deutschland open-ended real estate fund. Union Investment purchased the Laim290 from Vivico Real Estate AG in a transaction worth around EUR 30 mln. The deal was brokered by AtisReal.

The seven-storey Laim290 office building is located on the corner of Landsberger Strasse and Wotanstrasse in Munich. Tenants of the building, which was completed in October and offers some 9,700 square metres of space, are Bilfinger Berger, MRCE Dispolok and OPUS. Around 85% of Laim290 was pre-let ahead of completion.

Union Investment also acquired the Pfisterstock office/commercial building in the Alter Hof complex in Munich from Bayerische Hausbau for an undisclosed price. The property offers 4,550 m² of office space and 324 m² for retail. The Pfisterstock is part of the historic Alter Hof complex, which comprises the Lorenzistock, Pfisterstock, Brunnenstock, Burgstock and Zwingerstock wings. The building is fully let, with lease terms averaging 6.5 years. The deal was brokered by CB Richard Ellis.

'With these two transactions, we are using our financial strength to acquire outstanding properties in locations with a sustainable future,' says Dr. Frank Billand, management board member at Union Investment. Following portfolio sales in recent years, Union Investment is now systematically expanding its property portfolio in the German market. The company has already invested some EUR 1.9 bn this year, including around EUR 583 mln in Germany.