Union Investment to spend EUR 270m on Hamburg revamp project

German investor Union Investment said on Thursday that it has been granted planning permission to refurbish the landmark Unilever building at Dammtorwall 15 in central Hamburg. The company plans to add a separate new building featuring a hotel, apartments and office space alongside the office tower, which was built in 1965 and enjoys listed status. Union Investment has agreed a long-term lease for the building with Scandinavian operator Scandic Hotels.

'We will be investing some EUR 270 mln in the office tower and new building, which will comprise the new Emporio complex and are part of the portfolio of the open-ended real estate fund UniImmo: Deutschland,' said Frank Billand, member of the management board. On completion in 2011, the office tower and new building will form a landmark complex in Hamburg's Neustadt area. German event organiser Nord Event will be relocating part of its operations from the Speicherstadt district to Emporio in 2011 and has taken around 2,888 m² of space.

Union Investment intends to commence its refurbishment programme as soon as the current tenant, Unilever, moves out of the building in spring 2009. Special attention will be paid to sustainability issues and, in particular, the requirements of a listed building. 'With its resource-saving construction, energy efficiency and high-quality experience for users and visitors alike, the Emporio will be one of the most sustainable building complexes in Hamburg,' said Billand. Union Investment aims to secure the US green building certification for the Emporio in accordance with the Leadership in Energy and Environmental Design (LEED) system. The company is also seeking DGNB certificate status from the German Council for Sustainable Buildings.

In a separate statement earlier this week, Union Investment said it has acquired a four-star hotel in Vienna for EUR 34 mln on behalf of its open-ended real estate fund Unimmo: Europe. The Kaiserwasser hotel property was sold by Austrian group Raiffeisen evolution project development. The hotel opened in the summer of 2007 and consists of 282 rooms, suites and apartments as well as a wellness and fitness area. The hotel is located on the banks of the river Danube opposite the Vienna International Centre and is leased to Arcotel Hotel for a period of 20 years.

Unimmo:Europe's portfolio includes three- to five-star hotels operated by hotel groups Dorint, Marriott, Mövenpick, Steigenberger, Pullmann (ex Sofitel) and Radisson SAS in Germany and France. Hotel properties currently make up around 8% of the fund's portfolio.