German fund manager Union Investment has acquired the ‘Dern’sche Höfe’ mixed-use property in the centre of Wiesbaden for its institutional fund DEFO-Immobilienfonds 1. The purchase price was not disclosed. The vendor is German property company Quantum Immobilien.

Union said the investment follows a strategic restructuring of its portfolio, with smaller holdings being sold and individual properties being acquired with a target value of EUR 15-70 mln.

Dern’sche Höfe encompasses a former police headquarters with listed status, a historic townhouse and a highly specified new build. It was redeveloped into a complex offering 15,400 m2 of rental space, including 10,300 m2 of office space and 4,800 m2 of retail accommodation. The property is 90% let on long-term leases.

Union Investment was advised on the legal aspects of the transaction by Latham Watkins; the vendor was assisted by law firm Jebens Mensching.