BERLIN-Union Investment has acquired three residential and commercial buildings in Berlin for its Residential Value real estate fund.
The buildings, which include around 167,000 square feet (15,500 sq m) of residential and commercial space, were purchased from a US-based institutional investor. The assets are “core properties” benefiting from low vacancy rates and stable rental income in desirable city center locations in the Charlottenburg-Wilmersdorf and Berlin Mitte districts. The special fund’s outsourcing partner, Dupuis GmbH & Co. Asset Management KG of Berlin, handled the transaction.
Union Investment is responsible for administration of the special fund as part of the service KVG mandate. Portfolio and asset management has been outsourced to Dupuis. Residential Value primarily invests in well-leased existing buildings in Berlin and selected locations in the Brandenburg region. The fund’s investment strategy is essentially conservative, i.e. the focus is on solid returns and economic sustainability. The projected medium-term size of the fund is around $340 million (EUR 250 M). The current transaction means that 60% of the available capital has now been invested.