Union Investment Real Estate Completes €3.23B in Dispositions Across Office and Retail Assets

Union Investment Real Estate completed €3.23 billion in dispositions across 35 transactions in 2025, selling properties across seven public and special funds. The sales exceeded the previous year's volume of €2.75 billion and generated proceeds approximately €118 million above book values.

The firm announced January 16, 2026, that it managed €50 billion in global real estate fund assets at year-end 2025, representing a 10 percent decline from €55 billion in 2024. The firm attributed the decrease to reduced demand from private investors, with its three commercial open-ended real estate funds recording net outflows of €2.32 billion over the twelve-month period.

Major Disposition Activity

Union Investment executed strategic dispositions of core and trophy assets across Europe. Properties sold in 2025 included the Centre d'Affaires Paris-Trocadéro, the Finsbury Circus office building in London, and the Palladium shopping center in Prague.

"We made excellent use of the 2025 investment cycle, during which core and trophy assets in Europe enjoyed a brief resurgence, and successfully completed some of the largest structured transactions in Europe in this market environment," said Michael Bütter.

The firm reported that prices achieved were in line with or above the most recent expert valuations. Properties generated attractive returns over an average holding period of 14 years.

Institutional Business Offsets Private Investor Decline

While private investor demand weakened significantly, Union Investment reported strong institutional business performance. The firm secured newly acquired mandates in both the service KVG segment and insourcing mandates, offsetting declines on the private customer side.

The firm maintained high liquidity ratios across its portfolio, creating operational flexibility. Union Investment emphasized its diversified range of products and solutions in the commercial real estate sector as a key strength during the market transition.

Market Outlook and Strategic Positioning

Union Investment announced expectations for a positive turning point in performance and value development for all products in the first or second quarter of 2026. The firm positioned itself to return to the buyer's market after completing its 2025 disposition program.

The company stated it is developing an even more diversified business model with new real estate solutions. Union Investment's real estate business performed steadily overall in 2025 despite difficult market conditions, according to the firm's year-end assessment.

Sources

Union Investment Real Estate - Balance Sheet Real Estate Business 2025