Union Investment, Henrike Waldburg, Head of Investment Management Global
Q. Can you tell us about Union Investment Real Estate?
We are one of Europe’s leading real estate investment managers and have been active in the market for over 50 years. We are based in Germany and manage investments for institutional and private investors across a range of funds. We have EUR 51.7bn of assets under management (AUM) with over 470 projects across multiple sectors in 23 countries, spanning four continents.
Q. What is your role within the company?
It is a wide-ranging remit. I lead our global real estate investment department and am responsible for leading all our transactions in the American and Asian markets. In Europe I am in charge of all our retail investments, and I also head our newly established institutional investment management.
Q. Is your investment strategy changing following the pandemic and evolving consumer trends?
We will certainly be maintaining our long-standing focus on core and core plus investments. While we expect to be pursuing growth opportunities in the logistics and residential and food retail sectors, which have been particularly resilient throughout the pandemic, we will certainly be retaining our focus on our five key asset classes; offices, retail, logistics, hotels and residential.
Q. Can you elaborate on your approach to investment in retail, a sector which is experiencing considerable challenges?
We have always focused on the entire spectrum of retail properties, from high street and shopping centres to retail parks with strong food anchors. The pandemic accelerated the trend we were already witnessing of the polarisation of good and bad assets. Our investment strategy is based on two mainstream consumer trends: a focus on convenience and necessity spending, and demand for a 24-7 experience within a mixed-use destination. All our retail properties are located in communities where there is natural footfall and demand.
Q. What does this “convenience and experience” approach look like in practice?
Across our portfolio we are always looking at new ways to introduce complementary amenities and facilities to enhance the overall user experience. We work closely with our tenants, who also interact with each other, to ensure there is synergy in providing, for example, public libraries, art galleries, or health and medical services to add to the convenience and experience of a location. We also purposefully leave spaces open to allow short-term lettings to pop-up stores or accommodate events or exhibitions to contribute to the overall customer experience.
Q. How are retailers balancing their physical space with online platforms?
The most progressive retailers are adopting omnichannel strategies, recognising that their customer reach is far greater than focusing on one channel or another. Interestingly, we are also providing space to former pure online retailers to experiment with their first physical shops. As landlords, it is our responsibility to help these Global businesses achieve. It is an exciting, transformative time for retail.
Q. How optimistic are you about the future of city centres?
City centres are still the places for human interaction, the epicentres for culture and business, which cannot be accommodated in a decentralised way. However, they are no longer the preserve of only offices and retail. They must evolve and transform into 24-7 convenience and experiential-driven communities with something for everyone to enjoy. The return of office working is a key factor in bringing vibrancy and life back into our cities, but it will happen.
Q. How can developers do better to contribute to the evolution of city centres?
More thought needs to be given to mobility in general, public transport systems, and how visitors arrive and are able to move around destinations. From trains and buses to bicycles and e mobility, developers need to have transport and connectivity front of mind. The provision of open, green public spaces is as important as the buildings themselves, where the focus should not always be new build, but the transformation and improvement of existing buildings. With rising costs of increasingly limited resources, transforming current stock and reducing carbon in the drive to net zero is the sustainable course of action. Finally, developers must work in collaboration with key stakeholders, from local authorities and contractors to architects, engineers and tenants, to commit to a common goal and solution-orientated best practice.
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Name: Henrike Waldburg
Title: Head of Investment Management Global
Company: Union Investment
