Union Investment expands holdings in Japan

Hamburg-based Union Investment Real Estate has acquired the Solado Harajuku commercial building in Tokyo's Harajuku district for its open-ended real estate fund UniImmo: Global, in a transaction worth EUR 91mln.

The vendor of the property, which has a rental area of 1,380 m2, is a local investor. 'This acquisition is an excellent fit with our portfolio strategy for UniImmo: Global of expanding the holdings in Asia. In particular we are focusing on further diversification of uses and locations,' said Dr. Reinhard Kutscher, chairman of the management board of Union Investment Real Estate. In February of this year, Union Investment invested in Japan for the first time by purchasing the Shioma Koyoma office building. That transaction on behalf of UniImmo: Global was worth EUR 130mln.

Solado Harajuku is a mini shopping mall specialising primarily in fashion and food. The building was completed in April 2008 and has been fully let since that time on long-term leases.

Union Investment has significantly expanded its property portfolio in 2008 in both Germany and other countries. To date this year, the company has invested EUR 1.12bn in a total of 19 real estate projects and properties worldwide.