A hotel real estate fund managed by Principal Real Estate Europe has invested €40.50m to buy an asset in Spain.

The manager said its Principal Hotel Real Estate Fund II (Hotelfund II) fund agreed a forward purchase contract to buy Ona Hotel Terra in Barcelona from a local real estate developer.

The hotel has 152 rooms, a restaurant, a bar, 2 meeting rooms as well as a rooftop terrace with swimming pool.

Principal said the hotel, which was opened on 17th January, has entered into a long-term lease agreement with Spanish hotel group Ona Hotels.

The latest deal is the Hotelfund II fund’s second acquisition, which has received an additional €100m capital commitment to reach €245m, the manager said.

Jochen Schaefer-Suren, CEO of Principal’s hotel and leisure division, said the Ona Hotel Terra in Barcelona assets is a very attractive value-add opportunity in particular as the hotel development moratorium in Barcelona should constrain supply and provide a “unique opportunity to benefit from future demand growth to all existing hotels including our new hotel in Barcelona”.

“It is a perfect illustration of the type of value add hotel investments Principal is looking for after the successful sale of the hotel portfolio in Hotelfund I led all but of one of our investors in Principal hotel fund II to give us this further vote of confidence with over €100m additional equity.

”This allows us to look for further hotel investment for Hotelfund II of over €400m in 2020 and beyond”