Union Investment Real Estate Digital GmbH was founded in 2020 as a digital subsidiary of the Union Investment Group. Its offering comprised digital services for all aspects of commercially used properties. The technology spin-off started the pilot phase with the aim of gradually building a digital ecosystem for commercial properties based on the “Run this place” application and making the everyday life and work of real estate users more convenient and service-oriented. The services offered included car park management with parking and e-charging as well as various community and workspace services. The application was successfully rolled out in a total of twelve German office properties from the company’s own portfolio. In addition to customers from the Union Investment Group, external customers were also attracted to the building-related services. Due to the current market environment, Union Investment intends to focus even more strongly on its core business. For this reason, Union Investment has decided to discontinue the digital ecosystem based on the “Run this place” app at the end of the almost three-year pilot phase and to dissolve the technology spin-off Union Investment Real Estate Digital GmbH at the end of April 2024. The digital expertise for the real estate sector will be pooled internally.
“In this pilot phase, we have learnt a many things with our spin-off, in addition to our own PropTech initiative, and have gained valuable experience, particularly with the development of digital business processes. Last but not least, the new offering has enabled us to attract and retain employees for Union Investment who have brought with them a great deal of expertise from sectors other than real estate.”
Fabian Hellbusch, Head of Marketing & Communications at Union Investment
Union Investment now wants to rebundle the experience it has gained and the expertise it has built up in-house and utilise it for its own benefit. Most of the internal PropTech employees are to be integrated into the real estate subsidiary, where the digitalisation of processes is being driven forward, particularly in asset management. “This requires good people who have built up valuable new skills with “Run this place”,” says Hellbusch. Meanwhile, Union Investment is continuing to pursue its digital roadmap with great vigour. In particular, Union Investment’s real estate platform is developing rapidly. Efforts are focussing on data management, new processes and systems and automation. “Internal services as well as property-related services are becoming increasingly powerful, flexible and efficient. This harbours performance potential for our investors and for new business opportunities,” says Fabian Hellbusch. Union Investment also wants to develop new digital standards that will include partner companies, from the investment side to property managers.
