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Unibail stops sales plans: shopping centers in Germany affected!
Unibail-Rodamco-Westfield is planning to withdraw from Germany and could sell the Paunsdorf Center in Leipzig. Facts about the situation.
Unibail stops sales plans: shopping centers in Germany affected!
Unibail-Rodamco-Westfield (URW) plans to withdraw from a large part of its German business in order to pay off its debts. To this end, the real estate group would like to sell some German shopping centers. The offer included, among others, the Minto shopping centers in Mönchengladbach, Palais Vest in Recklinghausen and Höfe am Brühl in Leipzig. However, no buyers were found for the package in the first sales attempt, and selling the German shopping center portfolio is proving difficult Textile industry reported.
URW's withdrawal from the German market has far-reaching consequences, particularly for several shopping centers in Berlin. The affected locations include the Spandau Arcaden, Neukölln Arcaden and the Mitte Berlin at Alexanderplatz. In addition, the aforementioned shopping centers in Mönchengladbach, Recklinghausen and Leipzig are also part of the sales considerations. There is uncertainty regarding the future management of these sites as URW is only partially involved Development city supplemented.
Focus on premium objects
URW plans to focus on a few premium properties in the future, particularly locations that operate under the Westfield brand. This strategic realignment means that Germany is losing importance in the company's portfolio. The number of visitors fell by 1.4 percent in 2024, while tenant sales fell by 0.4 percent. In contrast, URW in Spain experienced a 13.6 percent increase in tenant sales and a 6.5 percent increase in visitor numbers. The development was also positive in France, with 4.3 percent more visitors.
Another reason for the withdrawal is the high investment amount for the Hamburg Überseequartier, which now amounts to 2.5 billion euros. The costs have increased by 190 million euros, due, among other things, to increased construction costs and compensation payments to tenants. In order to reduce the financial burden, URW plans to sell the aforementioned locations while concentrating on strategically relevant shopping centers.
The German market is changing
The challenges for URW in the German market are considerable. With each incomplete sales process, it becomes clearer how difficult it is to sell shopping centers in a declining market environment. It remains to be seen whether the planned sales can be realized in the near future. What is certain is that URW is longing for a strategic realignment and is questioning the relevance of the German market for the company.