To read this full article you need to be subscribed to Newsline.Sign in Sign up for a FREE subscription
Union Investment sells aging German property to a family foundation
Union Investment has sold an office and commercial building in Dortmund, Germany, to family foundation Andreas Deilmann Familienstiftung for an undisclosed amount.
The property was constructed in 1953 and was refurbished in 2005. It is centrally located in the Dortmund city center, close to numerous shops and places to eat. Although the quality of the microlocation has steadily improved since the property was purchased in 1999, Union Investment said the property no longer meets modern market standards and requires refurbishment.
“We seized this opportunity to optimize the portfolio because the age of the property and the building’s facilities no longer align with the fund’s current strategy,” said Wolfgang Kessler, a member of the management team at Union Investment Institutional Property. “This disposal will allow us to move forward with new acquisitions.”
The Andreas Deilmann Familienstiftung plans to extensively refurbish the existing building.