Union Investment has added a further property in a mid-sized German city to its institutional UniInstitutional German Real Estate fund by acquiring Kettwiger Tor in Essen. The vendor is a Hamburg-based investor group led by Achim Griese Treuhandgesellschaft. Details of the purchase price were not disclosed. Located close to the railway station in the busiest part of the city centre, the seven-storey building at 2-10 Kettwiger Tor with its eye-catching high-rise façade from the 1950s and the two-storey base structure comprises approximately 6,900 sq m of retail and office space. The 18-month refurbishment project saw the building upgraded to the latest technology and energy-efficiency standards. Working closely with the heritage authorities, the original appearance of the high-rise façade was largely retained. The retail space is already fully let and the office space 50 per cent let. Retail tenants include major chains, such as Kämpgen, Bolia, Hallhuber, Mammut, Kamps and Rewe.
The property reflects the target structure of the open-ended real estate fund for institutional investors, which was established in October 2012. The fund invests solely in Germany, focusing on smaller properties worth between EUR 15 and 50 million. In addition to ensuring diversification by use, investments are made in major regional centres and mid-sized cities such as Darmstadt, Nuremberg and Freiburg. “The pedestrian zone in Essen is one of the top retail locations in Germany and fits our search criteria to perfection,” said Dr. Christoph Schumacher, a member of the management team at Union Investment Institutional Property GmbH. Kettwiger Tor is the fund’s fifth investment. In November, UniInstitutional German Real Estate purchased the Franklinstraße 50 office property in Frankfurt/Main.
Source : Company