TSC Real Estate has negotiated a long-term extension of the lease agreement with the operator Alloheim for the senior citizens’ residence “Schloss Westhusen” in Dortmund on behalf of a Luxembourg-based fund company, at the same time reaching an agreement that the facility be modernised as part of its long-term positioning.
The generously-proportioned chateau and grounds on a site of approx. 35,000 square metres and with approx. 6,000 square metres of living space comprises 149 inpatient nursing places in 85 single and 32 double rooms, as well as 11 assisted-living apartments with floor areas of between 19 and 48 square metres.
In the framework of the extension of the lease agreement to a total of 25 years TSC Real Estate has agreed on a comprehensive modernisation package with Alloheim which is to be implemented jointly, whereby the property is to be upgraded in terms of its energy efficiency, basic structure and building technology. Moreover, these measures will enhance the attractiveness and the quality of the facility for residents and employees.
To this end TSC Real Estate and Alloheim will jointly hold responsibility for and coordinate the gradual renewal and modernisation of, among other things, the elevator systems, the building’s core infrastructure such as media riser branches, corridors, the residents’ rooms and apartments with bathrooms, kitchens and lighting, including measures to improve energy efficiency; the work will be conducted gradually through to the end of 2025 while business operations continue and will have a total volume of several million euros. Furthermore, the lease agreement foresees the installation of smart metering solutions as well as wide-ranging green lease clauses, whereby upgrading of the property’s ESG rating is to be attained.
The senior citizens’ residence in the historical moated chateau is located in the verdant Nette district of Dortmund at Schloß-Westhusener-Straße 71 in the heart of the chateau’s majestic gardens. The grounds with an embedded café provide ample opportunity for residents and visitors to take extensive walks, while the large and majestic sun terrace offers abundant seating areas. Despite its idyllic location, the facility has excellent traffic links – Dortmund city centre with its numerous retail and cultural offerings can be reached in just 15 minutes using public transport.
“In the framework of the very constructive contractual negotiations we once again experienced Alloheim and those responsible for the facility as extremely professional and collaborative leasing partners with an approach focusing on goals and solutions,” explains Olaf Herzberg, Director Asset Management Health Care at TSC Real Estate.
“This extension of the lease agreement with all the agreements reached on its content underlines the strategic continuation of our successful cooperation with Alloheim and documents the mutual desire and the commitment to sustainable, high-quality residential and care solutions in what remains a challenging market environment. The complex in ‘Schloss Westhusen’ is very attractive for both the residents and employees of Alloheim thanks to its unique location and the excellence of the care it provides, as well as being appealing to our investors as a result of the intrinsic value it creates,” says Berthold Becker, the managing director of TSC Real Estate.
Alloheim was founded in 1973 and is the largest care home provider in Germany. The company offers a wide range of care and nursing care services, including inpatient and outpatient care, day-care, as well as assisted living.
Legal advice on the lease agreement negotiations was provided by K&L Gates.