Magnat RE, JJW team up in Eastern European JV

Germany's Magnat Real Estate Opportunities said on Wednesday that it has signed a strategic co-operation with JJW Hotels & Ressorts with respect to the expansion into Eastern Europe. JJW is part of an international group with total assets of $ 1.7 bn that acquires, develops and operates hotels and resorts in prime locations throughout Europe and the Middle East.

The group owns and operates more than 50 international hotels. Founder and chairman of the JJW-Group is Sheik Mohamed Bin Issa Al Jaber. Also, Magnat said that it is adding to its portfolio an investment in the hotel project Palais Schwarzenberg, a top-class luxury hotel in Vienna. Magnat will hold a 19% stake in the project development company; while the majority owner with a stake of 60% is the JJW-Group.

The project comprises the re-development of the famous historic baroque-building, the extension by a new complex and the construction of an underground parking. The hotel in the unique location of the park of Schloss Belvedere will, upon completion, offer an integrated overall
concept with a total of 125 rooms, conference rooms, a spacious spa area and several restaurants. Financing for the overall project could be secured already, filings for construction permits are under way.

'The hotel Palais Schwarzenberg is an outstanding project not only because of its conception as a top-class luxury hotel but also because of the historic relevance of the site and its integrated overall concept. At the same time, this investment is of high strategic importance to Magnat because of the co-operation with JJW. Together, we are in an excellent position to capitalize on the tremendous growth opportunities in the Eastern European markets; common projects are already at an advanced stage of examination,’ said Jan Oliver Rüster, ceo of Magnat.