The UniInstitutional German Real Estate fund, which focuses on high yield properties in Germany, has secured the Franklinstraße 50 office building in Frankfurt/Main. Completed in 2003, the property offers around 8,773 sq m of office and storage space, which is fully let on a long-term lease to a financially sound accounting firm. The building includes 110 parking spaces and is situated in an established, central location in the City-West office sub-market. It is close to the trade show site and enjoys direct links to Frankfurt city centre. Hogan Lovells advised Union Investment on the deal. BNP Paribas Real Estate advised the seller.
With this fourth acquisition in Germany, the UniInstitutional German Real Estate fund has successfully invested a further part of the liquidity from the second subscription phase. At the end of September, Union Investment raised an additional EUR 100 million for the fund. As in the first subscription phase, the fund was heavily oversubscribed.
The fund was established in October 2012 to meet the investment needs of banks, churches and foundations and invests solely in Germany, focusing on smaller properties worth between EUR 15 and 50 million. It aims to cover a broad range of uses. In October, Union Investment acquired the 4-star angelo hotel in central Munich for the fund. “We also want the fund to be broadly diversified by region. Our search profile therefore includes mid-sized towns, such as Darmstadt, Essen, Cologne and Nuremberg,” said Dr. Christoph Schumacher, a member of the management team at Union Investment Institutional Property GmbH, Hamburg.
Source : Company