Union Investment will add a new, six-story building to the 225-meter office building Torre Mayor. In 2005, Union Investment's open-ended real estate fund UniImmo: Global acquired a 30% stake in the 55-story landmark tower. At the beginning of December, UniImmo: Global invested some $12 million in the "Reforma 489/Rio Elba 47" development on Paseo de la Reforma, located in Mexico City's CBD. Featuring 6,800 m² of office space and 1,170 m² of retail space, the class A Reforma 489 building is set for completion in the first quarter of 2009. Rio Elba 47 is already finished and operational.
The Reforma 489 building.
The demand for prime office space in the Reforma/Centro location is such that 96% of the Torre Mayor extension has already been pre-let. A total of around $40 million is being invested in the office block, in which Reichmann International (developer of both the existing and new buildings) has a 70% interest.
The acquisition of a 30% stake means that UniImmo: Global now holds six property investments in Mexico. As well as office buildings in Mexico City and Monterrey, the fund has also invested in a South American property. "A strong, local partner is essential if you want to establish a toehold in the emerging markets of Central and South America," says Michael Montebaur, the Management Board member of Union Investment Real Estate AG responsible for business outside Germany. "We have signed exclusivity agreements with Birmann and Reichmann International - pioneers of the local real estate development scene - for our investments in Mexico and Chile." Union Investment intends to further expand its strategic holdings in Central and South America in 2008.
Source: Union Investment