Union Investment has transferred the largest tranche of three properties, comprising 11 offices with 190,000 m² rental space to Amundi Real Estate. The properties are located in Germany, France, the UK and the Netherlands. This is a significant step in completing the Aqua portfolio deal valued at approx. €1 bln, signed at the beginning of August this year.
“With Aqua, we have implemented our regular sales programme of €1 bln per year in record time and highly efficiently,” said Dr. Frank Billand, chief investment officer and a member of the management team at Union Investment Real Estate GmbH. “The portfolio premium is a positive side effect and reflects our good timing. The sale was primarily aimed at reducing the age of our existing holdings and removing future threats to income from the fund portfolios.” Union Investment plan to reinvest the sales proceeds in high-return properties and projects, mainly in Europe, the United States, Mexico, Japan and Australia.
The sales programme required a year of intensive preparation. Philip La Pierre, head of investment management Europe, commented: “Careful advance planning of the sales process is crucial for successful completion of transactions of this size. The clear, solid positioning of the Aqua portfolio – offices, Europe, high-quality buildings – helped to ensure the sale was completed quickly and profitably. The homogeneity of the portfolio is now of key importance for investors. In addition, the range of bidders out there is quite different, with a mix of German, European and US capital. The involvement of international capital has brought with it significantly tougher requirements with regard to the presentation and availability of building-related data.”
The Aqua portfolio comprises 17 office properties with around 278,000 m² of rental space in six Western European countries, with a 75% focus on the UK (London, Glasgow, Cardiff), France (Paris) and Germany (Ismaning, Ratingen, Frankfurt/Main). Other locations are Vienna, Helsinki and Rotterdam. The portfolio features properties ranging in value between €25 mln and €147 mln, with the average property valued at €50 mln. The total annual gross rental income is approx. €60 mln.
Source: Union Investment
