Aroundtown advances conversion of office properties across European cities – “Serviced apartments are a key component”

Redevelopment of office properties strengthens urban locations / Additional Serviced apartments planned in Berlin, Frankfurt and Dortmund, among others

Aroundtown, one of Europe’s largest real estate companies, is consistently advancing its mixed-use strategy in prime central locations. A particular focus is on serviced apartments as a complementary use within existing properties. They introduce new usage patterns to traditional office locations, enhance the economic resilience of real estate assets, contribute to the vitality of urban districts beyond traditional office hours, and create attractive long-term income prospects that extend well beyond the standard lease terms typically associated with office space. The integration of serviced apartments is therefore not merely a response to changing market requirements, but a strategic building block for the sustainable value creation of existing properties.

The Coolse Poort project in Rotterdam demonstrates how successfully mixed-use concepts can be implemented. The former office building in a central location has been comprehensively modernized and transformed into a mixed-use property. Serviced apartments, conference spaces and additional amenities such as a large fitness center make the asset a vibrant part of the city center, tailored to the needs of its surrounding district.

“Offices remain a core component of urban environments – at the same time, requirements for buildings are evolving across markets. With mixed-use concepts, we make better use of existing space by selectively repositioning properties and complementing them with uses such as hospitality, food and beverage or fitness,” says Barak Bar-Hen, CEO of Aroundtown. “Serviced apartments are a key component, particularly in inner-city locations, as they enable flexible stay formats. They combine strong demand with attractive long-term income prospects, often more attractive than those of traditional office leases, while complementing existing office locations with a use that contributes to the vibrancy and sustainable value creation of urban districts.”

In 2025, the company successfully completed the conversion of an office building into a hotel property in Rüsselsheim, near Frankfurt, which was subsequently leased to B&B Hotels. Aroundtown is pursuing this approach in several European cities, including London. In Kensington, former residential properties that had previously been used for hospitality purposes were extensively renovated and modernized and converted into a serviced apartment offering. Across two properties, a total of 70 apartments are being developed, tailored to strong local demand.

Mixed-use in practice: projects in Germany

In several major German cities, Aroundtown is also planning the redevelopment of existing properties into mixed-use concepts. Conversions into serviced apartments, either as full conversions or as part of a mixed-use concept, are planned for the following properties:

• Dortmund (Königswall 1): Located directly at the central station, 51 serviced apartments are currently under conversion and are scheduled for completion in summer 2026.
• Athens (11 Themistokleous): Located in a central inner-city area of Athens, a former office building is being transformed into 43 serviced apartments. The completion is scheduled for the second half of 2026.
• Berlin (Karl-Liebknecht-Straße 31/33): In a prime central location at Alexanderplatz, 285 serviced apartments are being developed. The building permit has been granted, the former office property is currently under conversion, and completion is scheduled for the end of 2026.
• Dortmund (Hansastraße 95): The mixed-use transformation, including 134 serviced apartments, is also underway and is expected to be completed by the end of 2026.
• Berlin (Marburger Straße 12–13): Near Kurfürstendamm, 84 serviced apartments are being developed. The building permit has been granted, the former office property is under conversion, and completion is planned for 2027.
• Frankfurt am Main (Stuttgarter Straße 18): The office property in close proximity to the central station is being converted into a serviced apartment project with 188 units. The building permit application has been submitted and strip-out works have commenced. The full redevelopment will continue throughout this year, with completion scheduled for 2027.
• Hanover (Karl-Wiechert-Allee 18–22): In Hanover, 83 serviced apartments are being developed through conversion, with completion planned for 2027.
• Berlin (Köpenicker Straße 30): A total of 161 serviced apartments are being created at this location. The office property is currently under conversion, with completion scheduled for 2027.
• Frankfurt am Main (Bleichstraße 64): An office building is being partially converted into a serviced apartment concept comprising 86 units. The building permit application has been submitted, with completion planned for 2028.

The redevelopment of existing properties combines new usage concepts with technical and energy-efficient upgrades. The aim is to ensure long-term competitiveness of assets and to strengthen urban locations through a balanced mix of uses.

About Aroundtown

Aroundtown is one of Europe's largest real estate companies, MDAX listed and focused on income generating quality properties that have potential for value-add in central locations mainly in Germany, the Netherlands and London. The portfolio comprises mainly office, residential and hotel properties. Hundreds of experienced employees from all areas of the value chain ensure that Aroundtown effectively realizes long-term potential. Professional organization, flexibility, innovation and extensive tenant services make Aroundtown a reliable partner for growth and success. Aroundtown is a sustainability leader in the European market with strong visibility in ESG indices such as the Dow Jones Best-in-Class Index, and more. Aroundtown is a member of the European Public Real Estate Association (EPRA), the German Property Federation (ZIA), the German Sustainable Building Council (DGNB), the UN Global Compact Network Germany, Supporting member of the Society of Property Research (gif) as well as a signatory the Charter of Diversity. Aroundtown has received multiple EPRA BPR Gold Awards and EPRA sBPR Gold Awards for its transparent financial and sustainability reporting. Avisco (controlled by Yakir Gabay) holds 15% in Aroundtown (date: 29.07.2022) and Stumpf Capital GmbH 10% (date: 13.11.2023). Other shareholders include Blackrock, Norges, Vanguard, BNP Paribas, AXA, Alliance-Bernstein, APG, Dekabank, State-Street, Bank of Montreal and many other leading international investors. The main bond investors include ECB, GIC, Union Investment, DB, UBS, Nordea, Allianz, M&G, Pictet, Credit Agricole and many other major institutional investors.
In collaboration with the ZIA, Aroundtown is actively committed to promoting innovation and the future viability of the real estate industry.
www.aroundtown.de