Andreas Hohlmann, Managing Director at Unibail-Rodamco-Westfield Germany Image: URW
Ticker

Good momentum for the new business year

Unibail-Rodamco-Westfield Germany looks back on a successful business year; the strategic focus for 2019 further on lies on optimizing the existing portfolio.

For Unibail-Rodamco-Westfield, the year 2018 was much influenced by the acquisition of the industry heavyweight Westfield and the associated extension of the portfolio by the US and the British market. In Germany, the focus especially lay on the further development of existing assets. Large modernization projects are about to be concluded in 2019, too. In addition, the group will achieve important milestones in the new construction projects in Hamburg and Osnabrück.

The acquisition of the Australian shopping center company Westfield caused quite a stir in the industry in July 2018. Following the acquisition, the newly formed Unibail-Rodamco-Westfield Group has an unprecedented portfolio of assets in the most significant metropolises of the world, including Berlin, London, Paris and New York. “The Westfield brand, the know-how of our international colleagues and the global network of retailers and investors open up countless new opportunities for us”, says Andreas Hohlmann, Managing Director at Unibail-Rodamco-Westfield Germany. “This influence will become even more visible in Germany within next year – especially with respect to our refurbishment strategy.”

Revitalization at the centre of corporate strategy

Wilmersdorfer Arcaden. Image: URW

Firmly on schedule is the revitalization offensive in Berlin: At Wilmersdorfer Arcaden, the tenant mix, design and marketing approach are being revised. Owner Ivanhoé Cambridge is investing around 40 million euros in the center by the end of 2019. Well-aimed modernizations will also be completed in Schönhauser Allee Arcaden by the end of 2019 and Forum Steglitz by 2020. Both centers belong to the portfolio of Real I.S. AG.

Further important steps are the reconstruction measures in Havelpark Dallgow and in Einkaufszentrum Wust in Brandenburg, both owned by a joint venture of redos Group and Madison International Realty. Unibail-Rodamco-Westfield is involved as the operator of the centers, that are planned to become more attractive and versatile in the course of modernization. Düsseldorf Arcaden will also shine in new splendor. After numerous new and existing tenants have concluded contracts, the center is expected to position itself even more strongly as a neighborhood center with a new design from the end of 2019. Investor Hines plans to spend several million euros on the project.

The strengths of Unibail-Rodamco-Westfield will be deployed in all areas, reveals Paul-Eric Perchaud, Director of Operations at Unibail-Rodamco-Westfield Germany: “From architecture to tenant mix to marketing, we integrate the most successful concepts of the entire group, naturally always with sound judgement for the very individual requirements of the respective location, its tenant structure and the customer needs.”

Completed refurbishments throughout Germany

With the numerous modernizations, Unibail-Rodamco-Westfield continues its successful strategy in the German market. By 2018, the focus was already lain on project development: Riem Arcaden in Munich celebrated in March the completion of their extension. Within the last three years, owner Union Investment has invested a total of 105 million euros in the completion of the city district. In October, Erlangen Arcaden presented itself with new tenants, a modern interior design and a kids area. In November, the re-opening of the Gropius Passagen in Berlin followed. Nuveen Real Estate and Unibail-Rodamco-Westfield had previously invested 125 million euros to make Berlin’s largest center fit for the future. Also in November, the company inaugurated the first section of the re-designed Food Court at Centro Oberhausen. Unibail-Rodamco-Westfield and CPP Investment Board provide a total of 10 million euros here.

Progress in new construction projects

Image: moka studio

In the meantime, Unibail-Rodamco-Westfield also announced progress in the two development projects of the group in Germany. In southern Überseequartier in Hamburg, an entire urban quarter with space to live, work, shop and enjoy is to be created on a total area of 419,000 square metres. The concrete work in the excavation pit has already begun. Unibail-Rodamco-Westfield invests more than one billion euros.

“Southern Überseequartier in Hamburg will set new standards for innovative mixed-use developments – even well beyond the German market”, explains Dirk Hünerbein, Head of Development at Unibail-Rodamco-Westfield Germany. “The interest in destinations like this is enormous, which is why we are already in very promising negotiations for the most attractive locations in the future district at the current project stage. This shows that we are on the right track with our development strategy. Not least for this reason, we are looking forward to an eventful and exciting year 2019.”

For the second new development, Oskar in Osnabrück, all necessary building applications were submitted during last summer. After the building permit has been obtained, the demolition of the existing property on Osnabrück Neumarkt will be started in the first half of 2019. The leasing activities for both projects are in full swing.

 

Sign up for our ACROSS Newsletter. Subscribe to ACROSS Magazine.

Sign up for our ACROSS Newsletter. Subscribe to ACROSS Magazine.

Ticker MORE

Waitrose appoints new Retail Director

The John Lewis Partnership announced that Tina Mitchell will join Waitrose as Retail Director.

Anette Simpson Appointed as Chair of ULI United Kingdom

The Urban Land Institute (ULI) has announced the appointment of Anette Simpson, director of development and partnerships, Legal & General Affordable Homes, as chair of ULI United Kingdom (ULI UK). She succeeds Vanessa Hale, director of research, BNP Paribas Real Estate, and will officially begin her voluntary two-year term on 1 July 2021.

Sonae Sierra avoided costs of €15 million in 2020 by implementing eco-efficiency measures

The Company has reduced its CO2 emissions by 84% since 2005 and electricity consumption by 66% since 2002.

Yardi Acquires We Are Forge Ltd to Further Expand Visitor Management Integrated with Access Control Capabilities

Yardi® announced the acquisition of We Are Forge Ltd (Forge), a Bristol, UK based software company, that specialises in visitor management and smart access control for a wide range of real estate asset classes including, office, retail, industrial, flexible workspace and the education sector.

Serravalle Designer Outlet goes beyond fashion with new state-of-the-art leisure concept

McArthurGlen is pleased to announce the official opening of "Play Land", a brand new 6,000 square metre leisure concept at Designer Outlet Serravalle that is dedicated to family entertainment. The 7 million euro attraction introduces a new state-of-the-art experiential element to the centre that further enhances the shopping experience for guests of all ages.

EXPO REAL: the network to meet again in Munich

Preparations for Expo Real 2021—to be held from October 11 to 13 at the trade fair center in Munich—run at full speed, opening a long-awaited perspective for the international real estate industry.