Union Investment Real Estate has acquired the Space2move office building in Vienna for around €185 mln on behalf of its UniImmo: Europa open-ended fund.
Union Investment Real Estate has acquired the Space2move office building in Vienna for around €185 mln on behalf of its UniImmo: Europa open-ended fund.
The Hamburg-based real estate investment manager said it is stepping up its exposure to the Vienna office property market as part of its search for properties offering reliable long-term returns.
The fully let new build is located in the office submarket of Norden and has LEED Gold pre-certification. Closing of the contract is expected in 2015.
The property consists of three buildings and offers total rental space of 51,585 m2. Space2move is let to several companies with an average lease term of 18 years. The main tenant, occupying some 77% of the total space, is RALT Raiffeisen Leasing. Union Investment was advised on the deal by CBRE, Schönherr and TPA Horwath.
'Traditionally, Vienna has low volatility and therefore offers the stability we seek for our open-ended real estate funds,' said Philip La Pierre, head of investment management Europe at Union Investment Real Estate.
The property will be added to Unilmmo: Europa's €9.6 bn portfolio, which already includes three real estate assets in Vienna: the Floridotower and Euro Plaza 5 office properties, plus the Arcotel Kaiserwasser.