Union Investment has bought a fully-let office property in Austin, Texas for $103m (€77.8m).
Comprising two buildings, Research Park III & IV is a class A multi-tenant property that offers around 33,000 m² of rental space and is fully let on long-term leases, ensuring an attractive income return. Visa USA and Charles Schwab Corporation are the property’s anchor tenants.
The vendor is a fund managed by New York-based DRA Advisors.
Metzler Real Estate advised Union Investment’s New York office on the transaction.
The deal is the second acquisition in 14 months for Union Investments’ open-ended property fund Unilmmo: Europa. Union acquired the 555 Mission Street office property in San Francisco for approximately $446.5m for Unilmmo: Europa in June 2012.
“We are delighted with our investment in Austin. It is another premium location that offers excellent prospects for our fund,” said Union Investment Real Estate head of investment management international Martin Brühl.
Union Investment said it plans to acquire more real estate in vibrant US cities for Unilmmo: Europa. “The same approach applies whether we are investing inside or outside Europe – we are looking for locations that we feel are likely to outperform over the medium to long term,” said Brühl.
“In particular, that includes Chicago, San Francisco and Austin.” The focus is on acquiring core properties in the mid-price range.
Union Investment has invested in US property since 1985, and the portfolio now comprises eight office and logistics properties with a total value of some €1.4bn.
