German open-ended fund manager Deka Immobilien has bought a hotel in the Swedish city of Gothenburg for the equivalent of around EUR 41 mln. Located above Gothenburg's central station, one of the main railway junctions in Scandinavia, First Hotel G was acquired for Deka's WestInvest ImmoValue open-ended mutual property fund for institutional investors.
German open-ended fund manager Deka Immobilien has bought a hotel in the Swedish city of Gothenburg for the equivalent of around EUR 41 mln. Located above Gothenburg's central station, one of the main railway junctions in Scandinavia, First Hotel G was acquired for Deka's WestInvest ImmoValue open-ended mutual property fund for institutional investors.
The property comprises total lettable space of around 13,600 m2 and is fully let to First Hotels for a term of 25 years. The 300-room First Hotel G is among the largest and most modern hotels in Gothenburg.
The purchase was implemented as part of a sale-and-lease-back agreement. The vendor was the Norwegian company Host Hoteleiendom, which owns 21 other hotel properties in Scandinavia all let to First Hotels.
The WestInvest ImmoValue open-ended property fund primarily invests in European office properties. When it was launched in 2003, it was the first German mutual property fund aimed exclusively at institutional investors.
The DekaBank Group is the largest provider of open-ended property funds in Germany. The two investment companies, Deka Immobilien Investment and WestInvest Gesellschaft für Investmentfonds, together manage fund assets of over EUR 19 bn.
