Union Investment enters Silicon Valley with office acquisition

German fund manager Union Investment Real Estate has increased its exposure in the US market by buying a fully let office building in California's Silicon Valley IT hub.

Union Investment's Unilmmo: Global fund acquired the 5,480 m2 office building at 4085 Campbell Avenue, Menlo Park for $62 mln (€55 mln).

'The investment is an excellent fit with the fund's strategy, namely to expand the share of holdings in the Americas through broader geographical diversification on the west and east coasts of the US,' said fund manager Björn Thiemann. 'We want to gradually increase the proportion of non-European real estate assets from its current level of 35%. In addition to the US and Mexico, we are also looking very actively for investment opportunities in the Asia-Pacific region.'

Unilmmo: Global holds just one other building in the US, the Woodland Pointe office complex in Herndon, Virginia. Union Investment's total US real estate portfolio, which is distributed across a number of funds, comprises 11 properties valued at €2.5 bn.