Union Investment acquires four hotels in development
 
Union Investment acquires four hotels in development
05 OCTOBER 2018 9:02 AM

The portfolio comprises four hotels under development in Germany with a total of 675 rooms.

Hamburg, Germany--5 October 2018--Union Investment has secured a portfolio of four hotel development projects from benchmark. REAL Estate Development (benchmark.) via a forward purchase agreement. Three hotels to be built in Dresden, Oberhausen, and Eschborn will be transferred to the holdings of open-ended real estate fund immofonds 1. The fund is marketed exclusively in Austria. An additional planned hotel property in Freiburg im Breisgau is being acquired for special fund UII Hotel Nr. 1. The parties agreed not to disclose the purchase price. The portfolio contains two future Super 8-branded hotels and two planned long-stay formats by Hyatt House and Adagio Access. Long-term leases with a 25-year term have been agreed for all four development projects. Union Investment was advised on the transaction by Clifford Chance. Law firm Bornheim und Partner and Berlin-based consultancy Colliers International Hotel supported benchmark.

“The portfolio developed by benchmark. meets our high acquisition criteria and we are confident of the sustainability of these development projects. With their tailored concepts, all four hotels provide precisely what travellers are looking for at the respective location,” said Andreas Löcher, head of Investment Management Hospitality at Union Investment Real Estate GmbH. “The future outlook makes us optimistic about the hotels’ ability to generate strong long-term income.”

The hotels in Dresden and Oberhausen will operate under the Super 8 brand. The development project in Dresden will be constructed on Antonstrasse 43 on the northern side of the river Elbe in the Innere Neustadt district, in the immediate vicinity of Dresden-Neustadt railway station. With completion planned for the third quarter of 2019, the hotel will have a capacity of 176 rooms. The future operator is Primestar Hospitality GmbH.

The planned Super 8 hotel in Oberhausen will be built at Brammenring 111 in the Neue Mitte district. Upon completion in the third quarter of 2019, it will offer 156 rooms. Travellers using the hotel will be within easy reach of the main demand generators in this submarket, including the CentrO shopping centre, Metronom theatre and the multi-functional König-Pilsener-Arena venue. In addition, a business park currently under construction will further boost demand for accommodation from business travellers. The future operator is GS Star GmbH.

The largest hotel in the acquired portfolio is a long-stay Hyatt House. The 190 rooms include a living area and integrated kitchen and are targeted at extended-stay guests. Eschborn is an important commercial location and also close to Frankfurt am Main. There are good public and private transport links to Frankfurt airport and city centre, as well as to the city’s trade show site. Completion of the hotel is scheduled for the first quarter of 2020. The Hyatt House will then be operated by the HR Group.

The long-stay concept planned for Freiburg im Breisgau by Adagio Access, a Pierre & Vacances and Accor joint venture, is likewise scheduled for completion in the first quarter of 2020. Located on Eugen-Martin-Strasse in the north of the city, the hotel will provide 153 economy class rooms. This new development will also be operated by the HR Group after completion.

Benchmark. managing partner Götz U. Hufenbach: “When developing budget hotels, we focus on central locations, strong brands and experienced operators. By doing so, we create attractive investments for institutional investors.” Martin Hantel, managing partner at benchmark., adds: “Selling the portfolio via a forward purchase agreement underlines our standing as a reliable business partner for institutional investors.”

The acquisition of the three development projects in Dresden, Oberhausen and Eschborn significantly expands the hotel portfolio of immofonds 1. Up until now, the fund has held three hotel properties worth a total of approximately EUR 45 million in Vienna, Innsbruck and Dresden. The portfolio of special fund UII Hotel Nr. 1 contains 13 hotel properties and development projects following the acquisition in Freiburg im Breisgau.

The above is a news release written by a third party. While HNN’s editorial mission is to produce unique content, it occasionally publishes timely, newsworthy news releases to complement in-house reporting efforts. All news releases are clearly marked as such. For questions and clarification, please contact Editor-in-Chief Stephanie Ricca at sricca@hotelnewsnow.com.

No Comments

Comments that include blatant advertisements or links to products or company websites will be removed to avoid instances of spam. Also, comments that include profanity, lewdness, personal attacks, solicitations or advertising, or other similarly inappropriate or offensive comments or material will be removed from the site. You are fully responsible for the content you post. The opinions expressed in comments do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please report any violations to our editorial staff.