Union Investment is a leading international investment company, providing customised real estate solutions to meet the requirements of private and institutional asset allocation. Union Investment currently has assets under management totalling around €38.2 bn (Total AUM for all asset classes: €38.2 bn; Total real estate (AUM) €35.7 bn) in actively managed funds and more than €7.0 bn (Total AUM for all asset classes: €7.0 bn; Total real estate (AUM) €8.1 bn) in service and pooling mandates. Established in 1965, Hamburg-based Union Investment Real Estate GmbH is the specialist for private real estate investment within the Union Investment Group. Its sister company, Union Investment Institutional Property GmbH, focuses on real estate investment for institutional customers. The portfolios of Union Investment’s real estate funds comprise 661 (actively managed funds: 402; passivly managed funds: 259) properties and projects in the commercial sector in Germany and other European countries, the Americas and Asia-Pacific. Within the commercial real estate sector, Union Investment is active as an institutional investor and asset manager.
Strategic corporate development
Union Investment aims to progressively expand its product range for institutional customers by creating more special funds for bundling indirect property investments and providing property administration services. The strategic corporate development is building on:
- individual product solutions
- modular service packages (from vehicle only to full service offering)
- solutions compliant with German or Luxembourg law
- professional asset management
- holistic and proactive portfolio management
- robust risk management standards
- transparent best-in-class processes
- comprehensive reporting.
Investment principles & strategy
Union Investment is increasingly leveraging opportunities that arise from different property cycles around the world. To spread risk and enhance performance, the company has a strict policy of investing in a mix of uses, regions and property sizes. Investments in city centre office space are the mainstay of the company’s investment strategy. In addition, Union Investment is investing in logistics properties, shopping centres, residential and business hotels in selected locations that offer the prospect of attractive returns over the medium and long term. The company’s hotel portfolio consists of 80 properties with a total value of €6.2 bn. Some €13.6 bn is invested in 195 retail properties across 16 countries worldwide.
Since 2002, the company has expanded into 20 new markets, including Mexico, Singapore and Australia. Active in the property investment business for more than 50 years, Union Investment operates today in 23 countries around the world, with approximately 51% of property assets located in countries outside the domestic market.
For many years, Union Investment has had a strong focus on sustainable real estate. We consider sustainability in terms of cost efficiency, user comfort, location and construction quality, as well as energy efficiency. Sustainability thus becomes a quantifiable factor, which we track through collecting data on individual properties and entire portfolios. We operate a portal on sustainable real estate investment that showcases the latest trends and provides essential background information. Union Investment’s holdings today incorporate 169 properties with national or international certificates for sustainable building with a current market value of €23.7 bn.
Since 2012, the company has expanded into the infrastructure space with a renewable energy fund. Union Investment has added another attractive use type in recent years, namely residential property. Within this category, the company focuses on apartments, student accommodation and micro apartments.
The information and visuals contained in this presentation were prepared by Union Investment, Marketing, Communication, using its best judgement. The information was up-to-date at the time of producing the presentation and is subject to change on a regular basis. Information regarding opportunities and risks associated with the funds must be taken solely from the latest prospectuses, contractual terms and the relevant annual and semi-annual reports.