Union Investment plans EUR 1b acquisition spree in Asia

German real estate investment company Union Investment plans to re-invest the profits from a series of divestments of Asian properties in the region.

Over the next five years, Union Investment Real Estate intends to invest up to EUR 1 bn in Asian growth markets on behalf of its global real estate funds. The company has had a local office in Singapore since 2006.

'In addition to Singapore, Seoul and Shanghai both offer good conditions for office investments at present,' Volker Noack, a member of the management team at Union Investment Real Estate, said in a statement.

He was commenting on the sale by Union Investment's open-ended real estate fund UniImmo: Global of a renovated 19th century mansion in Singapore. The buyer was ERC International Private Limited.

The sale price was around EUR 38.7 mln, some EUR 17.7 mln above the purchase price in 2007.

Before it was renovated in 2001, the 19th century building comprising 2,100 m² of rental space was the home of a Chinese merchant. The entire building is now used by The University of Chicago Booth School of Business.

The House of Tan Yeok Nee is located close to the Vision Crest Commercial office building, which is likewise fully let.

Union Investment acquired Vision Crest Commercial for UniImmo: Global together with The House of Tan Yeok Nee, which was declared a national monument in 1974.