German fund manager Union Investment has acquired two commercial properties in Stuttgart for €30 mln.
Both located in the Stuttgart Engineering Park, the fully let properties dubbed STEP 4 and STEP 8.3 (pictured) have been purchased on behalf of Austrian real estate fund immofonds 1. The seller is STEP Stuttgarter Engineering Park GmbH.
Finished in 2002, STEP 4 building comprises 7,000 m2 of rental space used for retail, restaurants, cafés and fitness facilities. STEP 8.3 is a six-storey recently completed office building with approximately 8,000 m2 of rental space.
‘Both properties are clearly a positive addition to the holdings of immofonds 1,’ commented Kurt Rossmüller, member of the management board of Union Investment Real Estate Austria AG.
‘STEP 8.3 is a high quality new build with a highly diversified tenant structure. STEP 4 is likewise used by various different tenants and offers medium-term potential for delivering higher income through active asset management,’ he added.
Alejandro Obermeyer, head of investment management DACH at Union Investment Real Estate GmbH, explained: ‘Acquisition of smaller properties such as these ones in Stuttgart is a new focus of our investment strategy in the DACH region.’
‘Most of our actively managed real estate funds invest in Germany, Austria and Switzerland, and increasingly we want to use smaller lot sizes to meet that need.’ Obermeyer concluded.