Kildare Partners has disposed of the second of two Le Méridien hotels it acquired as distressed assets from Deutsche Bank a year ago.
Kildare Partners has disposed of the second of two Le Méridien hotels it acquired as distressed assets from Deutsche Bank a year ago.
The sale price for the 297-bedroom Le Méridien Parkhotel Frankfort was not disclosed, but adviser JLL said it was the largest hotel transaction in the German finance capital this year. The purchaser was German real estate investor Art Invest Real Estate.
In March Kildare sold the Le Méridien hotel in Munich for €158 mln to Deka Immobilien, who acquired it for the Deka ImmobilienEuropa open-ended property fund. The sale of the 381-room property was Germany’s largest hotel transaction in 15 years.
Kildare Partners acquired the two large hotels from Deutsche Bank as part of the €1 bn Mars portfolio, together with 24 offices and outstanding debt.
The two hotels were initially acquired in 2007 as part of the Mars package by Amsterdam-listed Eurocastle Investment, a vehicle externally managed by US private equity firm Fortress, for €2.1 bn. It was acquired from DB Grundbesitz-Invest, an open-ended fund run by Deutsche Bank’s property fund arm DB Real Estate.
Following a restructuring in 2011 and an extension of the loan facility to July 2014, Eurocastle sold its remaining 25% stake to Arminus, which also took on the asset management. Deutsche Bank began insolvency proceedings for the remaining assets in the portfolio in July 2013.
Christoph Härle, CEO EMEA for JLL Hotels & Hospitality Group, said: ‘The sale of the Le Méridien Parkhotel Frankfurt emphasises Frankfurt’s role as a preferred investment market in Germany, having recorded 10 single transactions since 2014 with a total volume of over €400 mln.’