PrimeCity Investment, a specialist in repositioning underperforming hotel assets, has acquired the Balladins portfolio of 10 hotels in western Germany.
PrimeCity Investment, a specialist in repositioning underperforming hotel assets, has acquired the Balladins portfolio of 10 hotels in western Germany.
PrimeCity's chief financial officer Christian Hupfer confirmed the acquisition to PropertyEU but added that he could not disclose further details 'at this stage'.
The portfolio consists of three and four-star hotels totalling 1,246 rooms located in western German cities - Bramstadt, Braunschweig, Bremen, Dortmund, Mannheim, Neu-Isenburg, Offenburg, Peine, Sindelfingen and Troisdorf.
The package was put up for sale last year by its owner, Dynamique Hôtels Management, as part of plans to withdraw from the German market. Dynamique is a French hotel group launched in 2006 by CBRE Global Investors. It bought the assets in 2008 from US fund Lone Star.
The landlord agreed a sale in July last year with a consortium led by A Capital, a private equity fund with offices in Hong Kong, Beijing and Brussels, and including Louvre Hotels Group. The two partners were planning to launch a €300 mln joint venture to acquire the assets and invest in further hotel properties across Germany but the deal fell through over the summer, forcing Dynamique Hôtels to find a new buyer.
PrimeCity is believed to have struck the deal in December last year.
Meanwhile, Louvre Hotels was sold by its owner, US-based private equity group Starwood Capital Group, to Chinese hospitality conglomerate Jin Jiang International Holdings for a price rumoured to be between €1.2 and €1.5 bn.
NYSE Euronext Paris-listed PrimeCity is 56%-owned by holding Group Aroundtown, which is also the owner of Grand City Properties, a Frankfurt listed real estate owner, as well as Camelbay, a 100% subsidiary which manages income-generating multi-tenant commercial properties.
