Retail

The retail sector is characterised by a constantly changing consumer behaviour and an increasing polarisation of locations and concepts. Accordingly, retailers are focusing more and more on customer benefits and are continuously adapting their locations and their online and offline sales strategies. In this environment, the various property types of brick-and-mortar retail and the continuous development of physical retail stores play a central role. Grocery anchored retail parks have proven their systemic relevance in times of crisis as they fulfil a basic supply function with their focus on goods for daily needs. In addition, in times of the "experience economy" the customer’s holistic shopping experience in market-dominant shopping centres and in prime high street locations is of great importance to the omnichannel strategy of retailers. High quality retail properties in excellent locations are benefiting from this trend to polarisation and remain a key component of the customer journey as well as Union Investment's investment strategy.

Around one fifth of all assets under management in our actively managed real estate funds are retail properties. This leads to a broad and international investment mandate and a great deal of responsibility for our investment and asset management teams. Already during acquisition phase, our specialised departments are closely collaborating to identify ESG-compliant properties and to elaborate valid business plans for our private and institutional investors. We ensure high and sustainable building qualities, a well-diversified tenant mix and a frequent communication with our tenants. This enables us to anticipate opportunities and challenges at an early stage. We are managing our retail properties in close cooperation with well-known centre and property managers and provide them with strategic guidance. Equal partnerships ensure that even in such a dynamic industry as retail, our customers, tenants and investors are positively surprised.