Union Investment and Unibail-Rodamco-Westfield extend long-term management contracts for three major retail real estate assets in Germany

The three center locations are each optimally positioned in the market and have an outstanding economic performance. In addition to restructuring and strategic development of the properties, this was based in particular on the continuous optimization of the tenant structure. In addition to the concentration on flagship stores, five current sector megatrends are the guiding principles for leasing: high-quality gourmet supermarkets, experience-orientated and differentiated gastronomy, leisure, in particular entertainment and culture, fitness and wellness as well as health and beauty. For example, Inditex flagship stores have opened at Riem Arcaden – the first PULL&BEAR in Bavaria and the first Bershka in Munich. Bershka also opened a store at Köln Arcaden and Radhaus as well as an Edeka gourmet supermarket recently strengthened the centre’s offer at Spandau Arcaden.

In addition, Union Investment and URW have increasingly integrated mixed-use elements into the properties over the years. A prime example of this is StadtQuartier Riem Arcaden, which combines 61,000 sq m of rental area for retail, over 60 apartments, 30,000 sq m of office space, including three doctors’ surgeries, and two hotels. Spandau Arcaden also has a clear mixed-use profile and combines retail with a large fitness/wellness and spa area as well as a hotel.

The sustainability strategy for the centers primarily includes measures in the areas of resource consumption, energy supply, biodiversity, modern mobility and social responsibility. In close coordination with Union Investment, URW applies its Group-wide sustainability agenda “Better Places” at the centers, with which the company is tackling the biggest challenges facing the real estate industry. Union Investment adopted its “Manage to Green Strategy” back in 2018 with the aim of making its global property portfolio climate-neutral by 2050. The sustainability approaches of the two companies dovetail perfectly.

Union Investment and URW now plan to consistently pursue this strategic course in the future and realize further potential at the three locations.

Andreas Hohlmann, Managing Director Austria & Germany, at Unibail-Rodamco-Westfield, says: “We are delighted about the extension of our strategic partnership with Union Investment and look forward to continuing the collaboration around the excellently positioned centres Riem Arcaden, Spandau Arcaden and Köln Arcaden. Together with Union Investment, we have big ambitions for the future with these three top assets: We want to build on their success story, shape their future together and further strengthen their already excellent position in the market. The extension of the contracts once again underlines our position in the industry as a premium provider in the management of retail properties.”

Ralf Schaffuss, Head of Asset Management Retail Germany at Union Investment, says: “For us, the extension of the cooperation with Unibail-Rodamco-Westfield is the logical consequence of the successful and reliable partnership between our companies to date. Especially in the challenging times of the recent past, our transparent cooperation has paid off at all three locations. In addition to the steady increase in the KPIs that are important to us, we believe that, together with Unibail-Rodamco-Westfield, we are well positioned for each asset to be able to successfully tackle future challenges together.” Unibail-Rodamco-Westfield Germany is responsible for the management of the three centres with its “Unibail-Rodamco-Westfield Real Estate Management” division, which bundles the management of retail properties for investor partners.