Union Investment Real Estate, the investment asset management arm of German firm DZ Bank Group, has acquired the 431,000 square foot First Rotterdam office tower for a figure understood to be around €133 million.
The firm bought the asset, which was completed in March, on behalf of its institutional real estate fund UniInstitutional Real Estate. The seller was a joint venture between Dutch property developers Maarsen Group and Rabo Vastgoed Group, which reportedly constructed the building for €80 billion.
Union Investment secured the office tower at an early stage through forward funding. The firm has not disclosed when ownership of the building will be transferred from the joint venture to itself.
“We are delighted to be represented once again in this competitive central European investment market with our institutional Europe fund. This first-class asset helps to reduce the age of our existing portfolio and also meets our sustainability requirements in exemplary fashion,” said Christoph Schumacher, a member of the management team at Union Investment.
First Rotterdam, at 390 feet, is one of the tallest in Rotterdam, the second largest city in the Netherlands. It already has two long-term tenants, investment management company Robeco and law firm NautaDutilh, which are utilizing 63 percent of the total rental space. The building is located in the commercial center of Rotterdam and also close to the city's main railway station.
The transaction marks Union Investments' re-entry into the Dutch core market after the firm sold its only property in the country, Rotterdam's Las Palmas office building, in January.
Union Investment, formerly known as DIFA Deutsche Immobilien Fonds, currently has real estate assets under management of €23.3 billion.