DERECO – Real estate worth EUR 300m sold
11/2019 – DERECO – Real estate worth EUR 300m sold
Zurück zur Übersicht
Following its realigned portfolio strategy, the independent multi-family office for real estate assets DERECO from Cologne disinvested refurbished properties on stock and new project developments totalling approx. EUR 300m.
Since the real estate on stock varied substantially in terms of function, DERECO, who had originally envisaged a package sale, decided to pursue a strategy of selling properties individually. The disinvesting process began in spring 2018 as the assets were first placed on the market. By early 2019, all of them were sold. Most of the portfolio consisted of refurbished real estate on stock, namely residential properties, retail facilities, offices and hotels. The buildings were situated in good, central urban spots in Dusseldorf, Cologne, Detmold, Bad Homburg and Siegburg, respectively. In Bergkamen (near Dortmund), DERECO sold a project development plot earmarked for future retail use.
DERECO is also in the process of finishing a new residential project in the centre of Moers, a town near Dusseldorf and the Dutch border. This project was started two years ago by DERECO as a sole entrepreneur. Construction activities are scheduled for completion by spring 2021. The plan is to construct a centrally located residential quarter with 139 apartments to let and approx. 890sqm of retail space underneath, on the ground floor. Upon completion of this first sub-project, DERECO intends to build a city-centre hotel with a focus on business travel on an adjacent plot. In this context, DERECO has reached out to internationally renowned hotel operators for negotiations. In total, the two sub-projects amount to approx. EUR 75m.
Once all refurbished properties and new project developments are sold, DERECO is going to intensify its efforts in the range of short- to medium-term investments in the value-add and opportunity segments. For this purpose, the company envisages investing in individual properties, portfolios, project development plots and neighbourhood developments across Germany. In line with DERECO’s new managing and develop-to-core strategy, equity will be invested in good to excellent micro-locations in economically attractive cities with positive socio-economic indicators and a minimum population of 200,000. Like before, DERECO is taking a broad approach to cover different categories of real estate including residential, offices, retail, hotels and logistics. In addition to single- and multi-tenant properties that are either (nearly) fully let or completely vacant or offer a potential for redevelopment and/or conversion, refurbishment and revitalisation activities will be considered. As far as land-only purchases are concerned, DERECO is interested in developing individual projects and neighbourhoods. DERECO is setting sights on properties with a minimum investment volume of approx. EUR 20m each. For more detail, please visit DERECO’s current investment profile at www.dereco.de.
Against this backdrop, DERECO has already secured properties, development plots and shareholdings with a target project volume of some EUR 200m in 2019.