Union Investment has obtained binding capital commitments from institutional investors totalling some EUR 1 bn for new, diversified real estate funds in the past six months.

After raising EUR 300 mln for its new retail fund and another EUR 250 mln for its special Residential Value fund, the German open-ended fund manager attracted a further EUR 350 mln for a third fund established in mid-December on behalf of a pension fund.

‘These three new funds significantly expand our range of real estate solutions for institutional investors inside just six months,’ said Dr. Christoph Schumacher, a member of the management team at Union Investment Institutional Property.

In addition to institutional funds and diversified special funds, Union Investment’s range of real estate solutions now also comprises thematic funds and pooling vehicles, he added. ‘We intend to continue leveraging the high level of demand from institutional investors for theme-specific expertise in property management. A further objective is to develop our market position with regard to individual solutions for pension funds and insurance companies.’

Union Investment has total assets under management of EUR 19.3 bn, including some EUR 3.2 bn across its institutional real estate products.