German project developer GBI has won a mandate to invest half a billion euros in hotel properties in Germany, Austria and Switzerland on behalf of institutional investor Bayerische Versorgungskammer (BVK) via a fund launched by Universal-Investment.
The new, hospitality-focused fund will seek to create high-quality portfolio with a long-term investment horizon, according to both firms. GBI will manage the assets.
'Hotel properties are highly attractive for long-term-oriented investors,' said Christoph Geirhos, head of real estate purchase and sale at BVK. 'The long-term operator agreements in particular provide a high degree of security and predictability.'
BVK plans to invest around €500 mln initially, including the fund's first deal, the Lindner Hotel Am Michel in Hamburg (pictured), purchased at the start of the year.
'This 4-star hotel in a prime city location in one of the most dynamic hotel markets in Germany is a fitting start for the fund,' said Simon Behr, director of fund management & transaction at GBI. Lloyd Fonds was the vendor after a ten year hold period.
The fund is now seeking comparable existing properties in the 2- to 4-star category in Germany, Austria and Switzerland, GBI said, not only in top locations such as Hamburg, but also in attractive locations in B and C cities.
In addition to traditional hotels, this will include assets in the long-stay sector. 'We are also interested in properties that are still in project development status,' added Behr.
With assets under management of around €77 bn, BVK remains one of the most significant institutional investors in Germany. GBI is one of Germany's largest hotel developers.
