Hamburg-based Union Investment has announced it is setting up a second open-ended real estate fund to expand its range of products for institutional investors.
Hamburg-based Union Investment has announced it is setting up a second open-ended real estate fund to expand its range of products for institutional investors.
Union Investment said UniInstitutional German Real Estate - launched on 17 October - gives institutional investors the opportunity to benefit from the performance of the German property market. The fund will invest exclusively in Germany with a focus on properties worth between EUR 20 and 50 mln. The target size of the fund is around EUR 500 mln. Its profile includes office, retail and hotel properties as well as other usage types, such as logistics.
'Open-ended real estate funds for institutional players have a firm place in Union Investment's product range,' said Christoph Schumacher, managing director of Union Investment Institutional Property, which is responsible for fund management of the new product within the Union Investment Group.
Investment locations will include German regional centres. In line with the conservative investment strategy, particular attention will be paid to tenant quality and the ability to re-let. The minimum investment amount for the fund is EUR 500,000.
Schumacher: 'The new Germany fund rounds off our range for institutional investors by adding an attractive new investment opportunity. As a complementary product to our successful UniInstitutional European Real Estate fund, it also offers interesting scope for diversification.' Launched in 2004, UniInstitutional European Real Estate is one of the biggest funds of its kind in Germany, with real estate assets of more than EUR 2 bn.
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