Union Investment has acquired two adjacent properties in Bremen's Überseestadt district, a key office sub-market of the city.
The assets, WQ1 and Haus am Fluss, represent a combined area of 11,500 m2 and are both fully let.
'Having had a low vacancy rate for many years and a consistently stable economy, we consider Bremen to be an attractive location for investments in German office property,' said Dr. Christoph Schumacher, a member of the management team at Union Investment Institutional Property GmbH. 'The Überseestadt urban development project is also particularly compelling,' he added.
The assets were acquired on behalf of the UniInstitutional German Real Estate fund for an undisclosed sum. In 2013, Union Investment purchased the Weser Tower, the tallest office building in Bremen, for its UniInstitutional European Real Estate.
The vendor of the two new properties and the Weser Tower was Bremen project developer Siedentopf.
WQ 1 is used by seven different companies from a range of sectors. The largest tenants include KPMG and Italian restaurant VaiVai. Haus am Fluss is let on a long-term lease to Bremen-based sea and air freight forwarding company Röhlig Logistics and to Chilli Club, an Asian restaurant and bar.
Union Investment said that the vacancy rate for office properties in Bremen in 2015 was 3.2%, significantly lower than the German average of 6%.
