Commerz Real’s open-ended real estate fund has added a Frankfurt hotel to its portfolio.
The manager said the Hausinvest fund has bought the hotel and retail areas in the Terra tower project from developer Groß & Partner for an undisclosed sum.
Terra is situated in a central location in Frankfurt’s banking district. Once completed, expected at the beginning of 2024, it will be 120 metres high and have 31 storeys.
Of the 28,000sqm of floor space more than 9,000sqm are accounted for by the areas acquired by Commerz Real.
More than 8,000sqm will be for the hotel and the rest for the retail trade and gastronomy, Commerz Real said.
Commerz Real said the hotel areas have already been pre-leased for 30 years to InterContinental Hotels Group.
Henning Koch, global head of transactions at Commerz Real, said: “There is a limited offering of up-market hotels in Frankfurt, meaning that a high-quality boutique hotel in such a premium location will meet with excess demand.
“And above all because the new quarter will open up the banking district to the shopping arcades of the inner city, integrating the quarter into downtown Frankfurt.”