Union Investment launches new open-ended real estate fund for institutional investors (DE)

Union Investment is expanding its range of solutions for institutional real estate investors by setting up a second open-ended real estate fund. UniInstitutional German Real Estate gives institutional investors the opportunity to benefit from the performance of the German property market.

"Open-ended real estate funds for institutionals have a firm place in Union Investment's product range," says Dr Christoph Schumacher, managing director of Union Investment Institutional Property GmbH, which is responsible for fund management of the new product within the Union Investment Group.

"The new Germany fund rounds off our range for institutional investors by adding an attractive new investment opportunity. As a complementary product to our successful UniInstitutional European Real Estate fund, it also offers interesting scope for diversification." Launched in 2004, UniInstitutional European Real Estate is one of the biggest funds of its kind in Germany, with real estate assets of more than €2 billion.

The new product, UniInstitutional German Real Estate, will invest exclusively in Germany with a focus on properties worth between €20 and 50 million. The target size of the fund is around €500 million. Its profile includes broad diversification across office, retail 2 Hamburg, October 18, 2012 and hotel properties as well as other usage types, such as logistics. Investment locations will include German regional centres. In line with the conservative investment strategy, particular attention will be paid to tenant quality and re-lettability. The minimum investment amount for the fund is €500,000.

Source: Union Investment

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