Invesco fund acquires Radisson Blu in Hamburg for EUR 155m

Invesco Real Estate has announced it has acquired the Radisson Blu Hotel in Hamburg, Germany, for EUR 155 mln on behalf of Invesco Real Estate's European hotel fund.

The global real estate investment management firm said this is the fund's most significant purchase to date and is the result of an earlier forward purchase agreement signed prior to an approximate EUR 50 mln renovation, executed by the Azure group.

The four-star hotel will continue to be operated by the Azure Group and managed under the Radisson flag by Rezidor, the international hotel chain. Standing 120 metres tall, the hotel has 560 guest rooms, conference and meeting facilities, restaurants, a ballroom, bar lounge and a spa. The hotel is located adjacent to the Hamburg congress centre (CCH) in the Planten and Blomen Park, and next to the city's ICE high-speed train Dammtor station.

The purchase of the hotel is in line with Invesco hotel fund’s investment strategy of expanding its diversified pan-European portfolio of acquiring leased three and four-star hotels and is the 12th acquisition for the fund to date and its third in Germany.

Jochen Schaefer-Surén, Head of Hotels and Leisure Fund Management said: 'The hotel's value in its 2009 valuation already exceeds the fund’s investment, and forecast rent for 2010 is also expected to exceed projections due to the relatively resilient Hamburg hotel market, the hotel's strategic location and the completed excellent renovation.

'This hotel adds further diversification and quality to our pan-European hotel portfolio, which is now growing rapidly with this fourth acquisition for the fund over the past 18 months. Indeed, we are confident that we will make further acquisitions in the coming months as we take advantage of the very attractive hotel investment opportunities available due to the fund’s strong capital position and our dedicated hotel real estate fund management team and expertise.'