Union Investment has sold an office and commercial building in Dortmund to the Andreas Deilmann Familienstiftung for its UII GermanM real estate special fund. The property, located at Westenhellweg 95-101 / Kampstraße 84-100, was acquired in 1999 and was one of the first properties in the UII GermanM portfolio. The parties agreed not to disclose the purchase price.
“We have taken the opportunity to optimize the portfolio, because in particular the property age and the equipment of the building no longer fit into the current strategy of the fund. We are thus creating scope for new acquisition opportunities,” says Wolfgang Kessler, a member of the management team at Union Investment Institutional Property GmbH.
The building was constructed in 1953 and last modernized in 2005. It is centrally located in downtown Dortmund and has many shopping and dining options in the immediate vicinity. The micro-location has undergone constant upgrading since the property was purchased. However, the property no longer meets current market standards and needs to be modernized.
“We are very pleased that we have found a buyer in the Andreas Deilmann Familienstiftung who does not want to demolish and rebuild the property, but has chosen the core refurbishment of the building to save grey energy. Transformational real estate like this needs to play a bigger role in meeting climate change goals and in the face of growing ESG requirements,” said Henrike Waldburg, head of Investment Management Global at Union Investment.
“We became involved in Westenhellweg several years ago and had a very good experience with the Dortmund city council and Volksbank Dortmund as financing partners. As a family-run foundation, we attach great importance to the sustainable management of our properties. With the use of heat pumps, recycled building materials, a PV system, use of gray water and other energy efficiency measures, we aim to achieve a KfW 40 EE standard upon completion. Through the conversion, we are creating new living space in Dortmund’s city center with around 160 barrier-free apartments,” says Andreas Deilmann, CEO of the Family Foundation.
Launched in 2016, UII GermanM pursues a “midscale” strategy. The investment focus is on mid-scale office and commercial buildings, essentially in ABBA and themed locations. The focus is on long-term viable locations, sustainable cash flows and a balanced risk-return profile.
The sale was brokered by Kleinschmidt Immobilien. Union Investment was advised on legal matters by KFR and on tax matters by GSK Stockmann.
