German fund manager Commerz Real has acquired a five-star boutique hotel in the Four Frankfurt development scheme in Frankfurt, Germany.
Financial details were not disclosed.
The 9,000 m2 property has been pre-leased for 30 years to InterContinental Hotels Group, which intends to open a Kimpton hotel there. This will comprise around 150 rooms and 30 parking spaces, with two bars, two restaurants, a fitness area and three conference rooms, Commerz Real said.
The fund manager has purchased the property for its open-ended real estate fund Hausinvest.
The hotel is situated in the 28,000 m2 Terra tower, one of the four high-rise towers in the new district, which is taking shape on land formerly occupied by Deutsche Bank. The listed facade at Junghofstraße 9–11 is to be retained. The hotel will be delivered when the district is completed in 2024.
'There is a limited offering of up-market hotels in Frankfurt, meaning that a high-quality boutique hotel in such a premium location will meet with excess demand,' said Henning Koch, global head of transactions at Commerz Real. 'Aabove all, because the new quarter will open up the banking district to the shopping arcades of the inner city, integrating the quarter into downtown Frankfurt.'
Four Frankfurt is one of Europe’s largest construction projects, comprising some 219,000 m2 of space. It has been designed to provide inner-city living space for some 1,000 people and working areas for approx. 4,000 employees.
