1 Oktober 2018
Union Investment sells RellingHaus to Aegila Capital Management for EUR 145 Million
• Union Investment Acquired RellingHaus in 2004 and Will Hold Four Other Commercial Buildings in Essen Following the Transaction
Aegila Capital Management (“Aegila”), the investment and advisory firm focused on European real estate investments, and Union Investment, Germany's largest provider of open-ended real estate funds for private investors, announce they have completed an agreement in which Union Investment has sold RellingHaus (the “Property”), a landmark office complex in Essen, Germany, to entities advised by Aegila for EUR 145 million.
Located in the center of Essen’s commercial district, the Property is comprised of seven interconnected buildings up to twenty-one storeys in height. With a total lettable area of c. 56,000 square meters and c. 900 underground parking spaces, the Property is one of the most prominent buildings in Essen’s central business district, in close proximity to the central train station, the high street and the headquarters of some of Germany’s largest industrial and energy groups. Evonik Industries AG occupies around 43,600 square meters of space in the building, with a further 12,300 square meters being let to ThyssenKrupp. The Property was certified “Excellent” by BREEAM for its outstanding sustainability credentials.
Union Investment acquired the Property in 2004 for the account of its open-ended real estate fund, UniImmo: Global. Following the sale of the Property, Union Investment will retain four other commercial properties in Essen worth over EUR 420 million, including the Limbecker Platz shopping centre. The transaction is Aegila’s second investment in continental Europe after its acquisition of Unilever NV’s global headquarters in Rotterdam in May 2018.
Essen is located in Germany’s Rhine-Ruhr region, the third largest metropolitan area in Europe after London and Paris. Awarded European Green Capital in 2017, Essen has established itself as an attractive business and investment destination with a well-established higher education sector, vibrant tech and R&D sectors, excellent infrastructure and low costs of doing business – making it second only to Munich by number of corporate headquarters located in a single German city.
Commenting on the transaction, Giovanni Gregoratti, CEO of Aegila, said: “This is a very solid first German deal for Aegila and it’s consistent with our strategy to focus on European real estate investment opportunities that benefit from attractive and resilient income profiles combined with potential value creation through active asset management. RellingHaus is a high quality, well managed property in an attractive market with a rapidly growing economy and strong demographic trends. We plan to continue to leverage our experience of investing in the intersections of the real estate market that traditional funds find difficult to enter – in order to deliver attractive returns to our investors.”
Martin Schellein, Head of Investment Management Europe at Union investment Real Estate GmbH, added: "RellingHaus has generated stable rental income for the UniImmo: Global fund over a long period of time. After the sale of RellingHaus, we will remain active in the Rhine-Ruhr region, catering to a large number of real estate funds for private and institutional investors"
L’Etoile Properties acted as real estate advisor to Aegila and will also provide property and asset management services. Bryan Cave Leighton Paisner acted as legal counsel, Witte served as technical advisors, Deloitte as financial advisors, and DZ Hyp is the financing bank.
Union Investment Advisors
Union Investment was advised on the transaction by JLL and on legal aspects by GSK Hamburg.