Listed German property investor Patrizia Immobilien has acquired six hotel properties under construction in central German urban areas for an undisclosed sum.
The hotels, with a total of around 600 rooms, are currently being built in Berlin, Dortmund, Heidelberg, Krefeld, Stuttgart and Wuppertal and have been rented to hotel operators for 20 years.
'We are delighted that we were able to identify these attractive investment opportunities for our customers before the hotels were completed. Finally, the properties are located in attractive microsystems and have long-term leases with successful and experienced hotel tenants,' commented Douglas Waibel, associate director at Patrizia.
The Heidelberg property, a budget hotel featuring 100 rooms, was purchased from Hirotani Projektgesellschaft and has been let for 20 years to the hotel chain Meininger Holding. It is expected to be completed by 2018. The other five hotels, comprising a total gross floor space of around 18,000 m2, were purchased from LIST Retail Development. They have been let to the B&B hotel group for 20 years and should be completed later this year.
The deal brings the value of Patrizia's hotel assets to around €600 mln. 'Patrizia has been steadily expanding its commitment to this asset class for several years,' concluded Waibel.
