Deutsche Finance International (DFI) has partnered with German real estate manager CELLS Group to buy the Sheraton Berlin Grand Hotel Esplanade from Archer Hotel Capital and Event Hotels.
Pan-European private equity real estate investor DFI said the pair have acquired the 32,000sqm hotel for €116m.
DFI’s pan-European value-add fund is the majority shareholder in the 394-key five-star hotel situated near Großer Tiergarten in Berlin-Mitte.
Financing for the acquisition is provided by Berliner Sparkasse.
DFI said the acquisition presents an opportunity to “unlock embedded value” through a series of asset management initiatives.
The deal is DFI and CELLS Group’s second transaction together following the acquisition of the Holstenwall 20-22 value-add office repositioning opportunity in central Hamburg, Germany.
Daniel Filser, the head of German investments at DFI, said: “Berlin is one of Europe’s most exciting and fastest growing cities. We believe that this transaction presents us with a strong opportunity to invest in repositioning the property to unlock embedded value by creating a first class mixed use destination that incorporates offices, restaurants and bars alongside an upgraded hotel.”
Dirk Ruppert, partner and CIO at CELLS Group, said: “We are very happy to acquire another property together with DFI in Germany.
“Located in the very heart of Berlin, this asset presents a number of exciting opportunities to enhance its offering and maximise its potential, while ensuring that hospitality continues to play a major role given the popularity of this well-located hotel.”
Dominic Seyrling, director investments at Archer Hotel Capital, said: “The sale of the hotel represents a rare win-win situation for all parties involved.
“We believe that they are the right party to bring a new life to this historically important property and we are looking forward to seeing the buyer’s plan come to fruition.”
To read the latest edition of the latest IPE Real Assets magazine click here.
No comments yet