Union Investment has launched the largest open-ended residential real estate fund in Germany, raising €620m in its first subscription phase.
Union Investment’s first residential fund, UniImmo Wohnen ZBI, was created in collaboration with sector-specialist, ZBI Zentral Boden Immobilien and looks set to grow, after having raised the capital during “its first subscription phase.” One of the portfolio, that ZBI have already secured, includes 260 properties consisting approximately 2500 residential units and is valued at €132m. The assets are mostly located in West Germany and were sold to ZBI by a group of UK and US investors.
Union Investment and ZBI will invest in the portfolio to bring the residential properties to occupancy and boost their value. As the fund aims to offer affordable living spaces throughout Germany, Reinhard Kutscher, chairman of the management board of Union Investment Real Estate, said: “With its initial portfolio, the fund is very well positioned to leverage opportunities in the German residential real estate markets.”
The potential impact of this new fund will be discussed at the next REVALUE round table in Berlin, Germany.