3 July 2018
Union Investment acquires two more commercial properties in Stuttgart Engineering Park
Union Investment has acquired two properties in the STEP Stuttgart Engineering Park. Completed in 2002, the STEP 4 infrastructure building offers around 7,000 sq m of rental space and is used for retail, restaurants and cafés and fitness facilities. It therefore provides key services for all the companies located in the business park. STEP 8.3 is a six-storey office building with approximately 8,000 sq m of rental space which has only recently been completed. Both properties were fully let at the time of acquisition. The vendor and future property manager is STEP Stuttgarter Engineering Park GmbH. The purchase price for the two properties is over EUR 30 million, with the acquisition being made on behalf of Austrian real estate fund immofonds 1.
“Both properties are clearly a positive addition to the holdings of immofonds 1. STEP 8.3 is a high quality new build with a highly diversified tenant structure. STEP 4 is likewise used by various different tenants and offers medium-term potential for delivering higher income through active asset management,” said Kurt Rossmüller, a member of the Management Board of Union Investment Real Estate Austria AG.
The largest tenants in the STEP 8.3 office new build are Yves Rocher with approximately 3,500 sq m and IT company GEBIT Solutions, which occupies some 1,500 sq m. The largest of the ten tenants in the STEP 4 infrastructure building are STEP Sports GmbH, a fitness and health club operator that uses approximately 2,000 sq m, and caterer Sodexo. In addition to a 2,500 sq m staff restaurant, Sodexo occupies around 800 sq m of conference space. The property also contains additional service providers, including a bistro, a bank, a hairdresser’s and a dry cleaner’s.
“Acquisition of smaller properties such as these ones in Stuttgart is a new focus of our investment strategy in the DACH region,” said Alejandro Obermeyer, head of Investment Management DACH at Union Investment Real Estate GmbH. “Most of our actively managed real estate funds invest in Germany, Austria and Switzerland, and increasingly we want to use smaller lot sizes to meet that need.”
Stuttgart Engineering Park was opened in 2000 and currently comprises twelve properties with total rental space of around 120,000 sq m. Union Investment has been invested in the location since 2006 and its real estate fund holdings already include STEP 6, comprising rental space of approximately 33,000 sq m, and STEP 9, which offers some 5,000 sq m.