German fund manager Union Investment Real Estate has grown its institutional assets under management by €670 mln from January to end-November 2016, lifting the total volume to €7.9 bn.
Union Investment said that an important factor in the growth was the launch of Urban Campus Nr. 1, a special alternative invesment vehicle targetting offices and workplaces in Germany.
Another development was the launch of UII German M. This fund, which very quickly attracted investment of €390 mln, offers institutional investors the chance to invest in medium-sized properties across a mix of city centre locations in secondary German cities and specialist locations.
In a statement, Union Investment said that its institutional business division was also highly successful on the transaction front. In the period from January to November 2016, Union Investment acquired 11 properties in the office, retail and hotel sectors with a total value of €643 mln for its institutional retail and special funds. During the same period, there were 12 disposals worth some €257 mln on behalf of the institutional funds.
As a result of the acquisitions, UII Shopping Nr. 1 is fully invested and the available cash in Institutional German Real Estate has been almost fully invested over the course of the year. As well as project purchases in Hamburg and Hanover, the fund recently secured the fully let office properties WQ1 and Haus am Fluss in the Überseestadt district of Bremen. In the year to date, properties have been acquired for UniInstitutional European Real Estate in Rotterdam, Manchester and Stockholm.
Further growth in 2017
Union Investment said that the institutional business was set for further growth in 2017. 'We intend to achieve this mainly by boosting the existing actively managed mandates and through new mandates in the Service KVG sector,' said Christoph Schumacher, a member of the management team at Union Investment Institutional Property.
The executive team at Union Investment Institutional Property will be strengthened from 1 February 2017. The new third member of the management team, Jörn Stobbe, will be responsible for risk management and compliance. He will also take on the role of chief operating officer at both Union Investment Institutional Property and its sister company, Union Investment Real Estate.
In addition to being responsible for institutional real estate solutions, new products and client relations, Christoph Schumacher will head up Fund Management Area 2, with a focus on international institutional retail funds. Management team member Wolfgang Kessler remains responsible for Fund Management Area 1.
Union Investment Real Estate also provides open-ended funds for retail clients valued at some €26 bn.
Union Investment Real Estate reported total assets of over €30 bn at end-June this year. Based on the reported growth in the institutional business alone, the full-year AUM is likely to be nearer €35 bn.
