Union Investment has sold an office and commercial building in Düsseldorf, the state capital of North Rhine-Westphalia, to PANDION AG on behalf of special real estate fund UII GermanM. The property is located in west central Düsseldorf at Oststraße 34 / Leopoldstraße 2. The purchase price was not disclosed.
“The building was one of the first properties to be added to the portfolio of UII GermanM. The age of the property in particular no longer aligns with the fund’s current strategy, which is why we seized this opportunity to optimise the portfolio. This disposal will allow us to move forward with new acquisitions,” said Wolfgang Kessler, a member of the management team at Union Investment Institutional Property GmbH.
Completed in 1964, the office and commercial building benefits from excellent visibility in Düsseldorf city centre due to its prominent corner location. The ground floor of the four to six-storey ensemble is used for retail outlets, while the upper floors are occupied by offices. The rental space totals some 8,900 sq m and is currently around 70 per cent let.
“We are delighted with the acquisition of this property in a prime location in Düsseldorf and close to PANDION OFFICEHOME Francis. The potential is huge. The district is one of the most exciting development zones in the city. With this project and many others in the immediate vicinity, it will form a new centre between Wehrhahn, Jakobistraße and the Old Town in the coming years,” said Klaus Küppers, branch manager at PANDION.
Launched in 2016, the UII GermanM fund pursues a midscale strategy. Accordingly, investment is centred on medium-sized office and commercial properties situated chiefly in “ABBA” locations (i.e. prime locations in secondary cities and secondary locations in primary cities) and specialist locations. The focus is on long-term viability, sustainable cash flows and a balanced risk/return profile.
Union Investment was advised by law firm KFR Rechtsanwälte.
