Bauträger Austria Immobilien (BAI Austria), the real estate development arm of Bank Austria, has sold a building located on Vienna's Schubertring 5-7 to the Flick Foundation for over EUR 100 mln. According to news reports in Austrian papers, the property is to open its doors at the end of the year as a five-star hotel operated by the Asian luxury hotel Group, Shangri-La.
Bauträger Austria Immobilien (BAI Austria), the real estate development arm of Bank Austria, has sold a building located on Vienna's Schubertring 5-7 to the Flick Foundation for over EUR 100 mln. According to news reports in Austrian papers, the property is to open its doors at the end of the year as a five-star hotel operated by the Asian luxury hotel Group, Shangri-La.
Built in 1866 under the name of Palais Gutmann, the complex originally housed a casino and in recent years became the main office of the German bank Girozentrale.
BAI Austria Immobilien bought the complex from the Erste Bank Group, owner of Girozentrale, at the end of 2005, with the intention to redevelop it into a luxury hotel offering 207 rooms, restaurants and a swimming pool across 24,000 m2 of space.
The company teamed up with real estate developer S+B Gruppe to build the scheme, which consists of four buildings. In 2008 BAI Austria leased the complex to international hotel operator Shangri-La, which agreed to lease the asset with a 30-year rental term. BAI Austria declined to comment.
