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 €35.9bn in actively managed funds and more than €4.2bn 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 open-ended real estate funds comprise 585 (actively managed funds: 368; passivly managed funds: 217) properties and projects 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 72 properties with a total value of €5.8bn. Some €12.9bn is invested in 175 retail properties across 14 European countries.
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 22 countries around the world, with approximately 52% 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 148 properties with national or international certificates for sustainable building with a current market value of €19.6bn.
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.
News from Union Investment Real Estate and Union Investment Institutional Property
Student housing: study by Union Investment and bulwiengesa reveals investment potential in 65 European cities download
Focusing purely on German Class A cities means missing chances Münster, Cologne and Stuttgart top the new city ranking Dublin scores highest among the non-German cities New strategies are required for the mid-price segment
Buoyed by a positive outlook among consumers and retailers alike, the majority of retail markets worldwide remained in good or very good shape during the second quarter of 2018.
Completion scheduled for autumn 2019 / Second acquisition for Urban Living Nr. 1 special fund
Huge digitisation potential in the real estate industry: countdown to the PropTech Innovation Award download
Applications from startups can be submitted up to 15 March / Final on 16 May in Berlin
Union Investment has sold the 14,800 sq m Chinon Center retail property in Hofheim am Taunus to Patrizia Immobilien AG.
News from IPE Real Assets
KWAP acquires its second real estate asset in Malaysian capital
German manager rotates Mexican assets
Special fund to invest in existing, new residential developments across Germany
German fund manager buys stakes in four assets from open-ended property fund
German manager invests in 448,000 sqft asset
White Papers / Research from Union Investment Real Estate and Union Investment Institutional Property
European retail markets are mostly in good shape at the start of the year. However, retail investors in Europe will need to adjust to a growing gap between robust retail markets and those that are subject to high risk in the long term. As Union Investment’s Global Retail Attractiveness Index (GRAI) shows, there are 25 points between the current top performer, Portugal, and the weakest market in Europe, Belgium.
• Slow and cumbersome decision-making processes are a primary obstacle • Building use phase offers the biggest potential for cooperation • Building performance benefits the most from Technology
Yield Targets Reassessed: European real estate investors focus on risk avoidance in late stage of market cycle download
Property investors believe the cyclical turning point will soon be reached in European real estate markets. Accordingly, professional investors are increasingly worried about misallocating capital. Yield targets are being reassessed.
Only one in four real estate investors in Europe believes that the current market cycle will peak soon and that the initial rate of return on real estate will start to rise again.
Walking the tightrope: Real estate investors seeking the right balance between caution and necessary risk-taking download
Options for investment in real estate in Europe are shrinking, while the risk of misallocating capital is rising as new money continues to pour in. Investing is thus a balancing act in which the capital side has become a decisive factor. By more actively managing liquidity and constantly balancing lower returns against higher risk, property investors in Europe are attempting to solve the dilemma caused by high levels of available liquidity.
Analysis from IPE Real Assets
The streets of Paris have been beset with civil unrest, but investors still see a city investing in infrastructure and positioned to benefit from Brexit
Not long after the global financial crisis, Germany’s open-ended property funds experienced their own existential threat. But the industry ultimately survived, writes Steffen Sebastian
Big data is coming to real estate and the most forward-thinking investors are already embracing it. Maha Khan Phillips reports
The real estate investment management industry has been on a steady upward trajectory in recent years. Its ascent has been fuelled in part by central-bank policies and volatility in the mainstream listed markets
One of the fastest population growth rates in Europe has city administrators and investors scratching their heads, writes Russell Handy