Investment Strategy

Union Investment Real Estate GmbH invests primarily in commercial property in the service and retail sectors. Risk is minimised by pursuing a careful policy of diversification in terms of property types, uses, tenants and lease lengths, and investing across various countries, regions, locations and industries. The Union Investment Real Estate GmbH funds’ property holdings therefore include office and business premises, as well as hotels, business parks, shopping centres and CityQuartier/StadtQuartier developments

When making investments Union Investment Real Estate GmbH focuses on prime, sought-after sites in locations with development potential: major cities in Germany and in Europe, and selected regions outside Europe. Besides acquiring properties directly, Union Investment Real Estate GmbH has a stake in a number of property companies.
The fund portfolios are reviewed on an ongoing basis in line with market requirements and trends. This process also includes modernising and restructuring properties.

Investment locations and Union Investment Real Estate GmbH investments in properties

Countries of investment: Data current at March 2010

Germany

Belgium

France

Canada

Spain

Czech

Hungary

USA

Turkey

Chile

Norway

Finland

Netherlands

Austria

Singapure

South Korea

Sweden

Luxembourg

Mexico

Malaysia

Japan

Italy

Poland

Switzerland

Portugal

Since 2002 in particular, Union Investment has greatly expanded its investment reach. In the last six years we have tapped into 20 new national markets for our open-ended real estate funds, primarily outside the conventional investment regions, e.g. in Mexico, Chile, Singapore and Malaysia.

This significant exposure to international markets is reflected in the broad regional diversification of the property portfolio. In 2002, almost 70% of real estate assets were located in Germany, with 30% invested in core European markets and the United States. Six years later the ratio has virtually turned around: some 60% of real estate assets are now located outside Germany, divided between 17 European markets, four markets in the Americas and four markets in Asia / Pacific.

Our property holdings are currently diversified across 26 national markets in Europe, the Americas and Asia. In international markets, Union Investment operates through its own specialist teams, local offices in Madrid, New York and Singapore, and a growing network of strategic partners.

20 new national markets entered in the last six years

Geographic distribution of real estate assets

Distribution of total portfolio by type of use

Current:May 7, 2010

Sustainability in the portfolio:

ATMOS

Munich

DGNB „Silber“

Laim290

Munich

DGNB „Silber“

Riem Büro West

Munich

DGNB „Silber“ (Vorzertifikat)

Emporio

Hamburg

DGNB „Silber“ (Vorzertifikat)

In our portfolios there are also a number of premium properties with international certifications:

111 South Wacker Drive

Chicago

LEED „Gold“

Bell Trinity Square

Toronto

LEED „Gold“

10 Gresham Street London „BREEAM Excellent“	One Kingdom Street, Paddington Central London BREEAM „Excellent”

1 Coleman Street London BREEAM „Very good“

Changi Business Park

Singapur

BCA Green Mark Award „Gold”

Investments in Germany:

Germany remains the most important investment location for Union Investment

Balanced regional distribution is a hallmark of our holdings, with a focus on major cities experiencing strong growth. Union Investment’s open-ended real estate funds continue to focus investment on the five key property locations in Germany – Hamburg, Berlin, Düsseldorf, Frankfurt / Main and Munich.