German investment manager Union Investment has sold an office and commercial building in Dortmund to family foundation Andreas Deilmann Familienstiftung on behalf of special real estate fund UII GermanM.
Financial details were not disclosed.
Acquired in 1999, the property at Westenhellweg 95–101/Kampstraße 84–100 was one of the first to be added to the portfolio of UII GermanM.
'We seized this opportunity to optimise the portfolio because the age of the property and the building’s facilities no longer align with the fund’s current strategy. 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.
The building was constructed in 1953 and most recently refurbished in 2005. The quality of the micro-location has steadily improved since the property was purchased. However, the property no longer meets modern market standards and requires refurbishment, the firm said.
'With the Andreas Deilmann Familienstiftung, we’re delighted to have found a buyer who instead of demolishing the property and replacing it with a new build plans to extensively refurbish the existing building, thereby saving grey energy.
'Transformation of properties like this one needs to play a more prominent role in the effort to achieve climate targets and meet rising ESG requirements,' said Henrike Waldburg, head of investment management global at Union Investment.
Added Andreas Deilmann, a member of the management board of the family foundation: 'As a family-led foundation, we attach great important to the sustainable management of our properties. With heat pumps, recycled construction materials, a PV system, use of grey water and other energy efficiency measures, we are aiming to achieve the KfW 40 EE standard upon completion.
'By reconfiguring the building, we will create approximately 160 fully accessible apartments and thus provide new living space in Dortmund city centre.'
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 prime locations in secondary cities and secondary locations in primary cities, as well as specialist locations. The focus is on long-term viability, sustainable cash flows and a balanced risk/return profile.
The sale was brokered by Kleinschmidt Immobilien. Union Investment was advised on legal aspects of the deal by KFR and on tax matters by GSK Stockmann.
