Union Investment acquires Rostock complex

The purchase price is in the mid tens of millions of euros.

Located in the Am neuen Werftdreieck shipyard district and constructed in 2020–2021, the ensemble offers some 14,000 m2 of rental space comprising two hotels and an office building.

Union Investment acquired the asset for its open-ended real estate fund immofonds 1, which is marketed solely in Austria. The ensemble is situated near the trendy Kröpeliner Torvorstadt area and is only around 100 metres from the waterfront and port.

Madeleine Groß, team manager, investment management hotels DACH at Union Investment, said: 'Over recent months, Rostock has shown itself to be relatively resilient in the face of the coronavirus pandemic due to very high leisure and tourist demand and the staycation trend.

'The complex also benefits from its location on a main arterial road between the city centre and Warnemünde and its good visibility.'

Added Michael Garstka, managing director of List Develop Commercial: 'The building ensemble features a future-oriented mix of uses in a central location. The façade design quotes the former shipbuilding hall opposite and visually creates an effective impulse in the Rostock shipyard triangle.'

The two hotels opened in December 2020 and summer 2021, with each of them having eight floors and 30 parking spaces. Together they offer some 9,700 m2 of rental space and are operated by B&B Hotels and GS Star respectively. Both leases have a fixed term of 25 years.

The office building has seven upper storeys, around 4,000 m2 of rental space and 29 parking spaces. It also includes around 300 m2 of restaurant space and has a BREEAM very good rating. The entire complex is interconnected at ground floor level and is currently around 55% let.

Union Investment was advised by Hogan Lovells, Heuking, HPC und Drees & Sommer.

KPMG Law, Dr. von der Hardt & Partner and BNP Paribas Real Estate acted for LIST Develop Commercial.