Union Investment has sold the Chrysler Building in Mexico City after holding it for five years. Comprising some 24,688 sq m of rental space, the office building was owned by the open-ended real estate fund UniImmo: Europa and sold for approximately USD 98.5 million. The sale proceeds exceeded both the most recent expert valuation and the original purchase price. Constructed in 2000, the headquarters of US car manufacturer Chrysler is located in Santa Fé, an established office sub-market.
Between 2005 and 2008, Union Investment assembled one of the largest and most valuable real estate portfolios of any European investor in Mexico. The Mexico portfolio, which consists of a total of ten office and logistics properties, including the 29-storrey “Reforma 265”, and has a total value of around EUR 350 million. “Mexico is a success story for our international funds. The sale shows that we are also able to manage the entire cycle in global markets,” said Martin Brühl, head of International Investment at Union Investment. Union Investment plans to reinvest the sale proceeds in Mexico in the near future. The search will focus on new builds and multi-tenant properties in Mexico City that are let on long leases.
Source : Company