German fund manager Union Investment has acquired a retail park in Madrid and a commercial building in Brussels for special fund UII EuropeanM, marking the first two retail properties to be added to the fund.
Financial details were not disclosed.
The commercial building at Chaussée d’Ixelles 63–65 in Brussels is located in Uptown, one of two city centre retail districts in the Belgian capital.
According to Union Investment, this refurbished shopping area, which was pedestrianised in 2018, has a footfall of over nine million visitors a year and is one of the most popular shopping destinations in the city.
The commercial building was completely redeveloped in 2017 and 2018 by the vendor, Redevco, and comprises 9,409 m2 of rental space. The main tenant is discount fashion retailer Primark with 5,959 m2 of retail space split over three floors (ground floor to second floor). Its lease runs until October 2033.
The remaining 5% of the rental space is taken up by six apartments on the third and fourth floors of the building. They are let to a single tenant, Comme chez Toi, for use as social housing until March 2034.
Union Investment was advised by Stibbe, Clifford Chance and CBRE on the acquisition of the property.
Retail park in Greater Madrid area
The On Plaza retail park near Madrid, which was built in 2019, has been acquired from a private investor and offers 10,580 m2 of rental space with eight rental units split across a main building, a restaurant and a separate supermarket with its own parking deck.
There are a total of 312 parking spaces. The property is fully let. The main tenants are supermarket chain Mercadona, DIY store Leroy Merlin, fitness studio McFit and non-food retailer Tedi.
The property is located in Torrejón, around 26 kilometres north-east of Madrid city centre.
Union Investment was advised on the acquisition of the On Plaza retail park by Savills and Hogan Lovells.
UII EuropeanM invests primarily on office, hotel, logistics and retail assets, focusing on midscale properties in European real estate markets.