Union Investment has sold an office and commercial building in Dortmund to the Andreas Deilmann Familienstiftung for the 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 optimise the portfolio because the age of the property and the furnishings of the building in particular no longer fit the current strategy of the fund. We are thus creating scope for new acquisition opportunities,” said Wolfgang Kessler, member of the management board at Union Investment Institutional Property GmbH.
The building was constructed in 1953 and last modernised in 2005. It is centrally located in Dortmund city centre and has many shopping and dining facilities 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 modernised.
“We are very pleased that with the Andreas Deilmann Familienstiftung we have found a buyer who does not want to demolish the property and build a new, but has chosen the refurbishment to save grey energy. Repurpuse of properties needs to play a more prominent role in efforts to achieve climate targets and meet rising ESG requirements,” says Henrike C. Waldburg, Head of Investment Management Global at Union Investment.
“We already got involved in Westenhellweg a few years ago and had a very good experience with 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, grey water utilisation 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 centre with around 160 barrier-free flats,” says Andreas Deilmann, Chairman of the Family Foundation.
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