Union Investment says there was 'unprecedented growth' of institutional assets under management in its real estate segment last year.
Union Investment says there was 'unprecedented growth' of institutional assets under management in its real estate segment last year.
Despite selling properties worth a total of €310 mln, assets under management grew over the course of the year by €380 mln to over €4.9 bn at end-November 2015.
Union Investment added €250 mln to its open-ended real estate funds during the same period. The company's thematic and special funds attracted around €133 mln of new cash.
Service KVG mandates and pooling vehicles also performed well, with cash inflows and capital commitments totalling approximately €750 mln. Overall, institutional assets under management at Union Investment stand at €7.4 bn.
Transactions
Union Investment Real estate acquired 12 properties or projects in the office, retail, hotel and residential sectors for its institutional retail and special funds In the period from January to November 2015. New acquisitions include the Am Wildpark 37-51 residential complex in Düsseldorf, the Radisson Blu hotel in Wroclaw and the Riviera shopping centre in Gdynia.
In the same period, seven properties held by the institutional real estate funds were sold, three of which comprised the Aqua portfolio sale.
'Thanks to our strong investment units, we have been able to convert the bulk of our capital inflows in 2015 into assets that offer sustainable, reliable income,' said Christoph Schumacher, a member of the management team at Union Investment Institutional Property.
A notable example of this, Schacher said, was the expansion of the portfolio of the UII Shopping Nr. 1 fund through the purchase of three shoppingi centres a for a total of around €220 mln. 'The product concept with its focus on European retail property has proved successful. These three acquisitions mean that the fund is almost fully invested.'
The institutional part of Union Investment’s business is set for further growth in 2016. 'We intend to further diversify our solution offering, including adding two new thematic fund products,' Schumacher said.
