Adding value in every phase of the property lifecycle
Forward-looking planning for sustainable properties
A property's lifecycle starts at the development stage, which has a major impact on its economic success. The ongoing development of existing properties also places specific demands on an asset manager. At Union Investment, a 37-strong unit supports the full range of planning and construction activities. These specialists use our proprietary Sustainable Investment Check tool to assess the financial, ecological and social credentials of every property prior to purchase. In addition to routine maintenance, Union Investment also invests significant amounts to ensure that the properties in its portfolio remain competitive. To this end, it is not unusual for a single-tenant property to be converted into a multi-tenant building or for a shopping centre to be Extended.
Bent Mühlena, Head of Real Estate Project Management, Union Investment Real Estate GmbH
Upgrading existing holdings
Inefficient floor plans, outdated technology and excessive water or energy consumption are all factors that can render older properties uncompetitive. We carry out detailed analysis of such buildings and consider the options. For properties in prime locations in particular, this is currently the ideal time for refurbishment across many markets. Our project management team ensures that impractical floor plans are transformed and single-tenant properties are converted into multi-tenant buildings. This often involves the creation of additional rental space, while building services are almost always renewed. Building management systems may be replaced, more efficient heating and cooling systems installed or investment made in the user experience. All these aspects increase the property's attractiveness and make re-letting easier.
An overview of current upgrading projects
Malesherbes: The office building was built in 1960 and has been fully refurbished since its main tenant moved out. Union Investment is investing around €27 million in the project.
Seestern: The former headquarters of the department store Horten at the Seestern was fully modernised in 2014/2015 in keeping with its status as a listed building. In September, the entire space will be leased to Deutsche Telekom.
New build Riem Arcaden, Munich
The urban quarter Riem Arcaden in der Messestadt is currently gaining 18,540 square metres of floor space. Alongside a Motel One hotel, new tenants include the German retail giant Peek & Cloppenburg. Building will be complete in spring 2018.
Hilton Munich City
Hilton Munich City, set in the old traditional quarter of Haidhausen, is currently being modernised while the hotel remains open for business. With 490 bedrooms, it is one of the largest hotels in Union Investment’s portfolio.
How you benefit
As an experienced portfolio holder, we know how important state-of-the-art building facilities are for the value and future viability of a property. Fortunately, as an equity-rich investor we are able to make ongoing investments in our high-quality portfolio of properties, thereby securing the long-term viability of the office, hotel, retail, logistics and residential properties held in our funds. Which delivers real benefits for you.
We deliver investment security for our tenants. Our buildings adapt to changing user requirements. Major projects such as remodelling and extension work are a standard feature of our operations.
There is no backlog of maintenance work in our properties, and they consistently meet high quality standards. As such, they are also attractive to future purchasers.
Our investors benefit from the sustained, reliable returns delivered by our properties. We continue to invest to ensure that this remains the case.
Forward deals in all their forms
Acquiring projects allows us to ensure that new purchases meet our specific requirements with regard to technical specification. Using our technical expertise, we also make sure that buildings are energy efficient and will contribute to the ongoing development of our portfolio in terms of ecological, sociocultural and commercial sustainability. By regularly acquiring new builds with high construction standards, our Acquiring projects allows us to ensure that new purchases meet our specific requirements with regard to technical specification. Using our technical expertise, we also make sure that buildings are energy efficient and will contribute to the ongoing development of our portfolio in terms of ecological, sociocultural and commercial sustainability. By regularly acquiring new builds with high construction standards, our real estate holdings remain young and attractive. Which delivers real benefits for you.
- Our strong capital resources provide developers with a high degree of reliability and financial security.
- As an architect, planner or project manager, you work with us on an equal professional footing. Efficient, proven processes offer maximum dependability.
- The sustainable quality of our real estate portfolio is reflected in the high occupancy levels across our open-ended real estate funds.
A central pillar of our investment strategy
The acquisition of development projects by way of forward funding has been one of Union Investment's core competences for many years. Some current examples are listed here.
Vor allem bei der Akquisition von Hotelprojekten setzen wir auf Forward Purchase-Modelle. Erfahren Sie mehr über unsere aktuellsten Projekte.
BIM – the future of construction
Digital planning processes make the planning, construction and operation of properties simpler, more transparent and cheaper. For most German players, techniques such as building information modelling (BIM) are still very much uncharted territory, but there is mounting pressure to innovate. In future, new buildings without a digital prototype will be a rarity.