One of Europe’s largest real estate fund managers has undertaken a comprehensive restructure, in response to what it described as “changing market requirements.”

Union Investment Real Estate, which has €40B (£34B) of assets under management in 22 countries, has merged two of its divisions, a move that has led to a personnel shake-up and will see it utilise artificial intelligence to a greater degree. 

The investor also said it is going to expand its investment strategy to include social infrastructure for the first time. 

Union’s new organisational setup will replace four management divisions with three: fund management, real estate management, and operations.

Real estate management, a new department headed by Karim Esch, will integrate investment and asset management, making it responsible for all areas from acquisition and disposals through asset management and lettings to the sustainability strategy.

It will also provide portfolio management services for third parties.

Henrike Waldburg, who was a member of the Union board and responsible for asset management, has chosen not to extend her contract, Union said. 

As a result of the reorganisation, Gerald Kremer, chief operating officer within the management team, is taking on a wider remit in the operations division. Board Chairman Michael Bütter remains responsible for real estate strategy, fund management, and marketing and communication.

Union said the changes would accelerate its digitisation and artificial intelligence strategy, without outlining specifics. 

To increase portfolio diversification, Union said it would gradually add property-related social infrastructure into its existing and new funds. That typically refers to assets like healthcare and educational properties. It said it would roll out the strategy in core European markets.

Union has been a significant investor in markets like Dublin, where it owns residential buildings like 8th Lock and office buildings like 4 and 5 Grand Canal Square; the Netherlands, where it owns office buildings like The Pulse in Amsterdam; and the UK, where it owns offices like Watermark Place in the City.