Adina secures EUR 30m finance for Berlin hotels

Australia-based apartment hotel group Adina announced that it has secured a EUR 30 mln debt facility with Westdeutsche ImmobilienBank (WestImmo) to finance two new Berlin properties currently under construction.

Adina, which describes itself as Europe's newest developer, owner and operator of upper market apartment hotels, said the deal underlines the firm's success in Europe to date and demonstrates WestImmo’s confidence in the upper market apartment hotel group.

Andrew Hunter, Adina's director for Europe, said: 'We are privileged to enjoy a strong relationship with WestImmo, as demonstrated by this latest agreement. The successful performance of our existing properties in Berlin, Copenhagen and Budapest, and the impressive returns of the Toga Accommodation Fund, has helped us to secure this facility and ensure the success of our future openings in the region.'

He said the Toga Accommodation Fund had delivered a 9% year on year return since its inception in 2006.

Adina Apartment Hotel Berlin Checkpoint Charlie has recently been chosen as an Expedia Insiders' Select hotel. This is an annual award recognising the top 1% of hotels worldwide, as judged by experiences of Expedia customers.

The Australian company said this success provides the perfect backdrop for the launch of Adina’s new hotels to be debt financed by the deal with WestImmo; Berlin. The hotels are the 139-room Hauptbahnhof due for completion in October 2009, and the 145-room Hackschermarkt due for completion in mid-2010. Equity for the projects is provided by the Toga Group, which views these properties as a core part of their long term investment strategy into Europe.

Adina Apartment Hotels is a subsidiary of the Toga Group, one of Australia's largest private groups with interests in property development and investment. It operates Vibe Hotels, Medina Apartment Hotels and Travelodge Hotels in Australia and New Zealand and first entered the European market with hotels in Budapest and Copenhagen.