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17 July 2018
press release

Schoenherr advises Union Investment on two real estate acquisitions in Austria's second largest city

Schoenherr has advised the German fund manager Union Investment Real Estate ("Union Investment") on two property acquisitions in Graz this year. 

Schoenherr supported the German investor in the acquisition of Max Tower, also known as Gürtelturm, a landmark office block situated in the district of Gries. Following the closing of this transaction, Union Investment also counted on Schoenherr for the acquisition of Styria Center, a mixed-use property in Graz city centre, for a purchase price of over EUR 40 million. Both acquired properties will be added to the holdings of open-ended real estate fund immofonds 1, which is marketed solely in Austria.
"German institutional funds are showing a growing interest in real estate investments in Austrian cities such as Graz, Linz, Salzburg or Innsbruck," commented Schoenherr real estate counsel Arabella Eichinger, who advised Union Investment on both acquisitions. "We're seeing these funds looking at investments which offer a strong potential for long-term rental income in cities beyond Vienna and the two acquisitions in Graz are an example of this trend," concluded Eichinger.
The Schoenherr team led by Arabella Eichinger (counsel, real estate & construction) in both matters provided comprehensive real estate law advice, as well as support in regulatory, corporate, competition, IP, labour, and insurance law matters within the scope of the transactions.
Union Investment is a German fund manager investing in real estate properties worldwide. The company also acquired the Milestone Graz micro apartment complex for students for one of its special funds in autumn 2017. Following the two transactions in 2018, the company’s real estate holdings in Graz are now worth a total of EUR 110 million.
Styria Center comprises residential, office and commercial units totalling around 15,000 m² of rental space. The seller is a consortium of three private owners. The transfer of rights and obligations for Styria Center is scheduled for autumn 2018.
Max Tower was owned by businessman and former politician Harald Fischl and is a well-known office building in Graz housing – amongst others - municipal authorities as well as insurer Helvetia. It covers approximately 6,200 m² of rental space and has 108 parking spaces.
The Schoenherr Vienna team which supported Arabella Eichinger in both real estate transactions included specialists from various legal practice areas: Benjamin Schlatter (associate, regulatory); Teresa Waidmann (associate, labour & employment); Marko Vladic (associate, real estate & construction); Dominik Hofmarcher (attorney at law, ip, it & life sciences); Christoph Tittes (associate, real estate & construction); Franz Urlesberger (partner, eu & competition); Elisabeth Kirrer (attorney at law, corporate/m&a); and Daniel Höhnl (associate, insurance).