The Cologne-based multi-family office for real estate assets DERECO sold the Rheinischer Hof complex in Velbert (near Dusseldorf) to a purchasing vehicle of Luehrsen Investment from Bremen.

DERECO had acquired the property as early as 2006 earmarking it for a portfolio of a Dutch family office back then belonging to Hochtief Constructions and kept it on stock as an asset to manage ever since. The sale was an off-market deal. “Most recently, our strategic approach has been to capture windfall effects for selected properties in a bullish market whenever our original forecast was substantially exceeded. Rheinischer Hof is just another case in point,” says Jörg Kohlhaus, DERECO’s Head of Investment and Asset Management.

The property in question is located on a plot covering just under 3,000 sqm right in the heart of central Velbert. Its lettable area amounts to approx. 7,200 sqm. Fully rented out retail space on the ground floor with direct access to Velbert’s main shopping street accounts for some 11% of total floorspace. Most of the remaining space consists of 27 apartment units and a care facility for 78 senior citizens. Additionally, there’s a catering area and a physiotherapy unit in the building.

DERECO obtained legal advice from the Heuking Kühn Lüer Wojtek law firm. It was agreed not to disclose the selling price.

“Towards the end of last year, we agreed with the family office to sell on the property for strategic reasons to unleash cash for other asset classes, the ultimate objective being to realign their portfolio,” says Tassu M. Degen, DERECO’s Managing Director.

For additional purchases, DERECO is searching the German market for existing properties and plots with a potential to increase in value. Relevant market segments include offices, housing, retail and hotels. In addition, DERECO is looking for developable land for new projects. Investment sums range between a minimum of EUR 20m for individual properties and up to EUR 500m for large neighbourhood projects. Besides top locations across the country, prospering cities and metropolitan areas with a population of at least 250,000 will be considered.