24 May 2018
Union Investment acquires planned residential and commercial property in Vienna
Union Investment has acquired the planned EHK 107 residential and commercial property in Vienna via a forward funding deal. The scheme, named for its location at 105-107 Erzherzog-Karl-Strasse in Vienna’s 22nd district, will offer some 9,700 sq m of rental space. The vendor is the project developer, a subsidiary of the Vienna-based Haring Group. The project has been acquired for the portfolio of open-ended real estate fund immofonds 1, for a purchase price of approximately EUR 33 million. This is the first time the fund has purchased a real estate project which is mainly residential in nature. Completion of the residential and commercial property is scheduled for late 2019.
“After immofonds 1 acquired its first logistics property in 2017, we are now further broadening the spectrum of use types by adding residential properties in Austria and Germany,” said Dr Kurt Rossmüller, a member of the Management Board of Union Investment Real Estate Austria AG. “Further acquisitions in this segment are planned. We are considering existing properties and also development projects. The fund is very broadly diversified, covering offices, retail, hotels, medical centres, logistics and residential. When completed, EHK 107 will be a strong addition to the portfolio.”
The approximately 9,700 sq m of rental space in the development is split into 8,000 sq m of residential space and 1,700 sq m for retail and similar uses on the ground floor, where local shopping facilities and a kindergarten are planned. EHK 107 will comprise over 112 two-room and 31 three-room apartments, which will offer 47 sq m and 65 sq m of space respectively. There is particularly high demand for this size of accommodation in Vienna’s 22nd district, which is the largest district in the city in terms of area. The apartments will feature a high-quality fit-out with parquet flooring, underfloor heating and fitted kitchens. In addition, from the first floor upwards the apartments will have an outside area such as a loggia or a balcony. The roof will be planted, with tenants benefiting from shared use. The EHK 107 development project is made up of a six-storey flat-roofed structure and a residential high rise with 11 storeys. Cellar rooms and 88 underground parking spaces are located in the basement levels.
Including the new acquisition of EHK 107, Union Investment currently holds 16 properties and projects in Vienna across its various real estate funds. The Vienna portfolio has a total value of over EUR 830 million, covering offices, hotels and residential use. At the beginning of May, the Hamburg-based real estate investment manager announced the acquisition of the planned “THE FIZZ Wien Hauptbahnhof” student apartment complex on Helmut Zilk Park for its special fund Urban Living Nr. 1.