Union Investment Acquires Landmark Weser Tower in Germany
- Jun 24, 2014
Union Investment has bought the landmark Weser Tower in Bremen, Germany, in a deal that is deemed one of the most significant real estate transactions seen in the city. The Hamburg-based investment manager acquired the building from developer Siedentopf for an undisclosed price.
“The combination of a high-quality property, its excellent location and the fact that it is fully let to a financially sound municipal company made the decision to enter the Bremen office market easy,” said Christoph Schumacher, a member of the management team at Union Investment Institutional Property GmbH.
Designed by Helmut Jahn, the 22-story office tower was completed in 2010 and is currently fully leased to EWE AG, Germany’s fifth largest energy provider. EWE AG still has 17 years to run on its lease. Situated in the Überseestadt district, Weser Tower features 17,912 square meters (192,803 square feet) and is the tallest office building in the city and the nearby region. The property joins the portfolio of the open-ended real estate fund UniInstitutional European Real Estate, which targets institutional investors.
“With its traditionally low vacancy rate, Bremen is an attractive alternative to Germany’s mainstream real estate markets,” added Schumacher.
Union Investment, the fund manager within the cooperative banking network (Volksbanken and Raiffeisenbanken), announced it will increase its ratio of property acquisitions in German mid-sized cities. The investment focus will be mainly on office and commercial properties with a value ranging from 15 to 50 million euros ($20.3 million to $67.8 million).
Earlier this month Union Investment also acquired a 4,939-square-meter (53,162-square-foot) building in Tokyo from Singapore-based Alpha Investment Partners. The eight-story property was acquired for 127 million euros ($173 million).