Union Investment expects to invest between EUR 1.5-2 bn in European real estate this year, roughly in line with last year’s total volume, chairman of the board Reinhard Kutscher said in an interview with PropertyEU. The focus will be on core markets, he added, pointing to the UK, France and Germany. Scandinavia and Central and Eastern Europe are also on the fund manager’s radar, he added. Ukraine is not on the list, but Warsaw is 'a very interesting market', he said.
Union Investment expects to invest between EUR 1.5-2 bn in European real estate this year, roughly in line with last year’s total volume, chairman of the board Reinhard Kutscher said in an interview with PropertyEU. The focus will be on core markets, he added, pointing to the UK, France and Germany. Scandinavia and Central and Eastern Europe are also on the fund manager’s radar, he added. Ukraine is not on the list, but Warsaw is 'a very interesting market', he said.
Last week, the Hamburg-based investor acquired a 91% stake in the Alexa shopping centre in central Berlin for EUR 316 mln in a major step toward its full-year target. The focus will remain primarily on Europe this year, Kutscher predicted. 'Europe is the best place for the kind of product we’re looking for at the moment. We probably won't buy anything outside Europe, though, which is exceptional for us.'
The US may, however, appear on the investor’s radar in the second half of the year, Kutscher added. 'It's a huge market, but in terms of adjustment, it has been lagging the UK. There may also be some good opportunities in Asia, particularly Japan which is seeing a double effect of potentially falling capital rates and low rents.'
In 2009, Union Investment topped PropertyEU’s ranking of cross-border investors with a total investment volume of EUR 1.6 bn representing 18 properties and projects for its six open-ended retail and special funds. With cash inflows of some EUR 2.63 bn, Union Investment's open-ended real estate funds, which are marketed via the Volksbanken Raiffeisenbanken banking network, achieved their best sales in 2009 since 2003. The company also outperformed the rest of the sector.
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