14 February 2022
Union Investment retains five major office tenants in the US and Australia
• 58,000 sq m of office space relet in overseas markets
Hamburg-based real estate investment manager Union Investment made a successful start to the 2022 financial year by signing two major lettings in the US. In Atlanta, the lease with the Federal Deposit Insurance Corporation (FDIC) for 4,000 sq m at Ten 10th Street was extended for another ten years. The building in the Midtown district offers a total area of approximately 40,000 sq m of office space and has been part of the portfolio of Union Investment’s international open-ended real estate fund UniImmo: Global since 2016. Ten 10th Street is home to a broad range of tenants, with the focus on the banking and ITC sectors. 96% of the space in the LEED Gold-certified property is currently let. In Dallas, the lease with Lincoln Properties Company for 5,500 sq m at 2000 Mc Kinney Avenue was renewed for the 2nd time. The property is also part of the UniImmo: Global fund since 2016.
With these deals Union Investment has been able to retain five major office tenants in the US and Australian markets in the past few weeks, with a total of 58,400 sq m of office space being relet. At landmark building 140 Broadway in the downtown area of New York City, the lease for around 17,500 sq m of space with the main tenant, Brown Brothers Harriman, was extended until 2039. In Houston, the lease with main tenant Shell Oil for some 24,100 sq m at 1000 Main Street, a Class A property in the central business district, was extended until 2031. In the Australian city of Brisbane, a direct lease for 7,300 sq m at the Flight Centre Southbank property was concluded with the current sub-tenant, Virgin Australia. The lease will run until 2030. The three properties all belong to the portfolio of UniImmo: Europa.
“With the office markets currently in a state of flux, it remains important to be able to offer quality real estate in good locations, backed by excellent tenant support. Larger tenants are increasingly making use of opportunities to position themselves strategically for the future of office work.”
Ulrich Dischler, head of Asset Management Overseas at Union Investment Real Estate
Union Investment let or relet a total of approximately 1.3 million sq m of commercial real estate space in 2021. The high occupancy rate of the actively managed real estate funds of 95 per cent, based on rental income, was thus maintained in a challenging market environment.
For Union Investment Real Estate GmbH
Head of Real Estate, Marketing, Communications