The recently announced decision by Germany’s largest manager of open-ended real estate funds to bring $2 billion in new investment to US real estate transactions is welcome news to commercial real estate professionals on the hunt for capital. Union Investment, the Hamburg-based investment giant manages funds totaling $32 billion while specializing in city-center office space and business parks, with a secondary emphasis in retail, logistics and business hotels.
With an eye toward that many vital sectors of the US commercial market, this is one international capital allocation that will attract attention over the coming years, especially since it may double the US holding of the company relatively quickly. Union claims its US portfolio currently includes “nine office and warehouse properties worth $2 billion”
Metzler Providing Onshore Perspective
“Over the next three to five years, with the help of our investment advisors Metzler Real Estate, we intend to invest up to $ 2 billion in the US growth markets on behalf of our global real estate funds,” said Dr. Frank Billand, Chief Investment Officer and Member of the Management Board at Union Investment. After acquiring the trophy building 555 Mission Street in San Francisco in 2012 and entering the Texas real estate market with the purchase of Research Park Plaza III & IV in Austin in 2013, the investment manager is currently preparing additional investments in outperforming locations in the US.
Colliers Sponsors Chatter In Miami
Buzz surrounding this influx of German investment is mounting: headlining the speakers list for Colliers International’s recently announced Real Estate Capital Summit in Miami is none other than Martin Brühl, Union Investment’s head of International Investment Management. Surely meeting Martin (along with two billlion of his friends) has found its way onto the agenda of many a commercial real estate dealmaker this week.
(Photo credit: LendingMemo)