Union snaps up Breisgau Center for new retail fund

Union Investment Real Estate has made the first acquisition for its newly-launched retail property fund for institutional investors, UII Shopping Nr. 1. The German investor has purchased the Breisgau Center scheme in the Freiburg-Haid business park in Freiburg from a property company operated by Hamburg-based Newport. The companies agreed not to disclose the financial details.

Originally built in 1975, the 16,700-m² complex was refurbished last year and is fully let. Anchor tenants include Real and Adler which have long-term leases and occupy 10,872 m² and 3,180 m² of space respectively. A further 18 retail units are also located in the complex, which offers parking for 950 cars.

'As a high-yielding retail property, the Breisgau Center is an excellent fit with the acquisition profile of our new fund,' said Christoph Schumacher, deputy managing director of Union Investment Institutional Property. Other investment properties have already been presented to investors, he said.

The fund will invest primarily in shopping centres across Europe, with a minor exposure to retail parks and trophy buildings in high street locations.