Stockholm-listed real estate company Balder has entered the German market by acquiring a portfolio of hotels for €58 mln.
The assets have a total of 842 rooms over more than 40,000 m2 of lettable space and comprise two hotels in Berlin as well as properties in Leipzig, Erfurt, Gelsenkirchen, Malente and Bad Oldsoe.
The seller was Thai company Fico, which acquired them as part of a larger portfolio from Grand City in 2014 for a total price of €80 mln.
Swedish company Lingula Hospitality has taken over the management of the hotels from Grand City’s subsidiary GCH. Lingula has signed a 20-year lease for the hotels, which currently operate under the names Ibis, Tryp by Wyndham and Days Inn.
Balder said the annual rental income was €4.3 mln, with the Berlin hotels accounting for around 40% of the total.
'We have a very long-term approach and hopefully we will be investing in Germany for many years to come,' said Balder CFO Marcus Hansson.