Union Investment Real Estate AG added significantly to its property portfolio in the first six months of 2008, investing some €1 billion in a total of 18 real estate projects and properties worldwide. Additional transactions worth €250 million are also close to completion.
"We have exceeded our targets by a considerable margin and there is every prospect that acquisitions in 2008 will surpass last year's figure of €1.5 billion," says chairman of the Management Board Dr. Reinhard Kutscher. In the first two quarters, Union Investment acquired property worth €400 million in Germany alone. The company also leveraged investment opportunities in the established markets of Europe, the USA, and Asia, and in the emerging markets of Latin America. The most recent acquisitions are the Bandera 76 and Teatinos 258 office buildings in Santiago, Chile, which were acquired for a total of around €14 million to round off the UniImmo: Global fund. The vendor of the two historic office buildings, which were completely refurbished in 1987 and 1995 respectively, is Pan Atlantic Bank and Trust Ltd.
Bandera 76 and Teatinos 258 are located in downtown Santiago, close to the main government buildings, stock exchange, university and several subway stations. Comprising 9,020 m² of space, Bandera 76 is fully let to a broad mix of tenants from the government, banking, insurance and copper production sectors. The 4,400-m² office/commercial building Teatinos 258, also completely let, has a long-term anchor tenant in the form of state environmental agency Conama, which occupies around 80% of the building.
"Thanks to its position in the property market cycles, both globally and within Latin America, Chile is the ideal choice for portfolio diversification," says Michael Montebaur, the Management Board member of Union Investment Real Estate AG responsible for business outside Germany. Just some 18 months after market entry, the Chile portfolio already comprises five buildings worth over €100 million in total. This gives Union Investment a particularly strong market presence in Central and South America compared to other European property investment management companies.
Source: Union Investment