FAM Real acquires STEP 4 property in Stuttgart from Union Investment

Stuttgart-based FAM Real has acquired the mixed-use commercial property STEP 4 at Wankelstrasse 10/12 in Stuttgart. The seller is Union Investment, which has held the property in one of its open-ended property funds since 2018. STEP 4 has a total of around 7,500 sqm of rental space with fitness, conference, catering and retail uses and is to be repositioned and let in the short term and used to supply the entire surrounding area. The proceeds from the sale were higher than the last appraised value. The parties have agreed not to disclose further details.

"With this profitable sale, we are consistently implementing the rejuvenation strategy for our portfolio and at the same time reducing our excessive overall exposure to the Stuttgart Engineering Park," says Alejandro Obermeyer, Head of Investment Management DACH at Union Investment.

With this acquisition, FAM Real is continuing its already successful proprietary investment strategy with a clear equity commitment together with wealthy families. In the coming years in particular, properties with significant potential for value appreciation and a need for structural development are to be acquired. The target volume of the restructured investment vehicle focussing on southern Germany and Vorarlberg is expected to be around €150 million.

The consultants from E&G Immobilien in Stuttgart acted as intermediaries on behalf of the owner. FAM received legal and tax advice on this transaction from SGP Schneider Geiwitz and technical advice from its sister company, albrings + müller ag.