Cologne-based Colonia Real Estate has sold its hotel portfolio of three German assets to two unnamed foreign investors for EUR 24 mln. Colonia said the price reflected the current fair market value of the properties. The cost basis for the hotels, which were acquired in 2004, was about EUR 22 mln.
Cologne-based Colonia Real Estate has sold its hotel portfolio of three German assets to two unnamed foreign investors for EUR 24 mln. Colonia said the price reflected the current fair market value of the properties. The cost basis for the hotels, which were acquired in 2004, was about EUR 22 mln.
The company said it had realised an internal rate or return of 28% per annum on the portfolio.
CEO Stephan Rind said: 'In a tough environment we were able to sell this portfolio successfully. Additionally another EUR 19.9 mln in short-term debt due in December 2008 is off our books. The next refinancing in the group matures in early 2010.'
Colonia Real Estate is a listed company with more than EUR 3 bn in residential and commercial real estate assets under management.
