German fund manager Union Investment has acquired a residential and commercial project in Vienna from its developer, a subsidiary of the locally-based Haring Group, for €33 mln.
The scheme, named EHK 107 for its location at 105-107 Erzherzog-Karl-Strasse in Vienna’s 22nd district, will offer some 9,700 m2 of rental space on completion in late 2019.
The project has been acquired for the portfolio of open-ended real estate fund immofonds 1, representing the first time the fund has purchased an asset which is mainly residential in nature.
'After immofonds 1 acquired its first logistics property in 2017, we are now further broadening the spectrum of use types by adding residential properties in Austria and Germany,' said Dr Kurt Rossmüller, a member of the management board of Union Investment Real Estate Austria.
'Further acquisitions in this segment are planned. We are considering existing properties and also development projects. The fund is very broadly diversified, covering offices, retail, hotels, medical centres, logistics and residential. When completed, EHK 107 will be a strong addition to the portfolio.'
The asset comprises 8,000 m2 of residential space and 1,700 m2 for retail and similar uses on the ground floor, where local shopping facilities and a kindergarten are planned. EHK 107 will comprise over 112 two-room and 31 three-room apartments, which will offer 47 m2 and 65 m2 of space respectively.
Including EHK 107, Union Investment currently holds 16 properties and projects in Vienna across its various real estate funds. The Vienna portfolio has a total value of over €830 mln, covering offices, hotels and residential use. At the beginning of May, the Hamburg-based real estate investment manager announced the acquisition of the planned 'THE FIZZ Wien Hauptbahnhof' student apartment complex on Helmut Zilk Park for its special fund Urban Living Nr. 1.