3 March 2020
Union Investment acquires retail park in Austria
Welas Park comprises 24 retail units across 15,000 sq m of rental space / Acquisition for immofonds 1
Union Investment has agreed to acquire Welas Park, a remodelled retail park in the economically thriving region of Linz-Wels. The property was originally constructed in 2006, and reopened in spring 2019. Around 33 per cent of the almost 15,000 sq m of rental space is let to the two anchor tenants Merkur and Lidl. Welas Park thus has a clear focus on food retailers, supplemented by a range of other local amenities across a total of 24 retail units. The vendor is Rutter Immobilien Group, which extensively restructured and modernised the retail park over a period of 18 months during ongoing operation. The acquisition will be added to the holdings of open-ended real estate fund immofonds 1, which is marketed solely in Austria. The purchase price was not disclosed.
“Retail parks and local shopping centres with a focus on everyday essentials such as food and toiletries are high on our fund managers’ wish lists. That is true of immofonds 1 as well as many of our other real estate funds which are aimed primarily at institutional investors. In line with this preference, our strategy for the retail sector currently has a clear focus on modern properties that offer an excellent visitor experience, an Internet-resistant tenant mix and stable long-term cash flow.”
Henrike Waldburg, Head of Investment Management Retail at Union Investment Real Estate GmbH
In total, 8 of the 14 real estate funds actively managed by Union Investment have the flexibility to invest in retail parks. Geographically, the focus is on the DACH region, as well as core European countries such as the Netherlands and Sweden, where retail parks with daily-needs retailers are also an established feature.
At the time of acquisition, the occupancy rate of Welas Park is around 95 per cent. The average weighted lease term of the retail units is approximately 10 years. The retail park benefits from some 600 parking spaces. The property is located in close proximity to the B1 highway, the main arterial road between Wels and the Linz motorway intersection. The catchment area comprises some 165,000 people.
For Union Investment Institutional Property GmbH