HAMBURG, GERMANY-In the past calendar year, Union Investment has acquired $1.87 billion (EUR 1.37B) of new capital for its institutional real estate funds.
Union Investment expanded its broad-based offering for institutional investment requirements by introducing six new products. These include a special fund focused on budget hotels and an infrastructure fund for renewable energy.
“We are particularly pleased that our strong investment team has allowed us to invest most of the acquired capital in attractive assets already,” said Christoph Schumacher, a member of the management team at Union Investment Institutional Property GmbH. “The start-up phase of our new products has been highly successful in the hotel segment, but also in terms of office real estate in mid-sized German cities.”
Over the past 12 months, banks, foundations and other institutional investors have invested some $576 million (EURO 421M) in the open-ended real estate funds UniInstitutional European Real Estate and UniInstitutional German Real Estate. The new Germany-focused fund, which was again heavily oversubscribed in its second subscription phase, accounted for some $137 million (EUR 100M) of the total. Union Investment attracted new capital commitments totaling around $303 million (EUR 222M) for its six special real estate funds in 2013.
Progress was also gratifying in the service mandate business, where Union Investment acts on behalf of pension funds and insurance companies. Here, some $1.87 million (EUR 224M) were acquired. Union Investment likewise performed well with pooling vehicles which allow investors to bring all their real estate investments together in one place. Approximately $683 million (EUR 500M) of new investment capital was collected in this segment.
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