Union Investment has agreed to acquire the Styria Center in Graz city centre. The building is a mixed-use property comprising residential, office and commercial units across a total of around 15,000m² of rental space. The vendor is a consortium of three private owners. The purchase price is approximately €40m. The Annenstrasse acquisition will be added to the holdings of open-ended real estate fund immofonds 1, which is marketed solely in Austria. The transfer of rights and obligations for the Styria Center is scheduled for autumn 2018.
The Styria Center comprises an existing structure and a new building. The existing building was constructed in 1890 and last updated in 2015. It consists of approximately 7,800m² of rental space, split between retail and office use. Tenants include food retailer Spar, perfume shop BIPA and the Austrian Labour Market Service.
In addition, the project includes 104 residential units ranging in size from 30m² to 100m² with an underground car park for 72 spaces for cars and 140 for bicycles. All apartments are located in the quiet interior courtyard and have a generously-sized loggia or balcony. Once completed, the residential units will take up 8,600m², thereby accounting for the largest proportion of space in the property.
“With its mix of residential, office and retail use, the Styria Center is a highly attractive proposition in Graz city centre, offering strong potential for sustainable long-term rental income,” said Dr Kurt Rossmuller, a member of the Management Board of Union Investment Real Estate Austria AG. “The original building has been intelligently developed to create a modern, vibrant property that is an excellent fit with the immofonds 1 portfolio.”
