A joint venture of Singapore-listed group First Sponsor and two of its shareholders, City Developments and Tai Tak Estates Sendirian Berhad have acquired Le Méridien hotel in Frankfurt from Art-Invest Real Estate.
The asset, which was held in Art-Invest's Manage to Core Hotel Fund, was sold for around €85 mln.
The hotel is leased to Munich-based operator MHP Parkhotel under a long-term lease and is operated under a franchise agreement with Starwood under Le Méridien brand.
The property consists of a listed historic building built in 1905 and an annex from the 1970s. Located directly next to Frankfurt's main train station, it provides 300 guest rooms, 10 conference rooms, a fitness and a spa area and 48 parking spaces.
Art-Invest bought the asset in an insolvency proceedings in May 2015 and subsequently signed a new lease with operator MHP and extensively renovated the property.
'With this transaction, we have once again successfully implemented our Manage to Core approach,' commented Peter Ebertz, managing director and head of hotels at Art-Invest, the transaction.
The seller was legally advised by 3A Partnerschaftsgesellschaft and GSK Stockmann, technically by SMV Bauprojektsteuerung Ingenieurgesellschaft, PlanB Beratende Ingenieure and PLANR Elektrotechnik. CBRE brokered the deal.
