Union Investment Real Estate has acquired the four-star andel's Berlin hotel from a joint venture of developers Warimpex Finanz- und Beteiligungs and UBM Development for a price of €105 mln.
Union Investment Real Estate has acquired the four-star andel's Berlin hotel from a joint venture of developers Warimpex Finanz- und Beteiligungs and UBM Development for a price of €105 mln.
Warimpex and UBM started developing the asset in 2006 on a 50-50 basis and have been operating it since 2009, under the management of Vienna International Hotelmanagement.
Completed in 2009, the conference hotel is located in the Prenzlauer Berg district of Berlin directly opposite the Velodrom sports arena. It includes 557 rooms and conference facilities of over 3,800 m2.
Vienna International Group will continue to be responsible for managing the hotel as lessee after completion of the sale in the third quarter of 2015.
'Our strategic investment in a project in an area of Berlin that was very underrated at the time has now been brought to a very positive conclusion with the sale of this exceptional property. The combination of hotel and conference centre enables andel’s Berlin to offer a compelling hotel concept which meets the city's needs and has greatly enhanced its location in East Berlin in recent years,' said Franz Jurkowitsch, CEO of Warimpex.
'The sale of andel’s does not mean we are exiting the German capital,' said UBM's CEO Karl Bier. 'On the contrary, Berlin offers a range of investment opportunities. In addition to a number of residential projects, we are developing Holiday Inn Express Alexanderplatz near Berlin's City Hall. We are also working on a shopping centre and event venue together with Warimpex, which will be located on the site of Berlin's former central stockyard and abattoir opposite andel’s Hotel.'
The asset will join the portfolio of the Unilmmo: Deutschland open-ended real estate fund. 'Hotels remain a core component of our funds. As a leading travel destination in Europe, Berlin is one of the most attractive and dynamic markets in this asset class,' commented Andreas Löcher, head of Hotel Investment Management at Union Investment Real Estate, which owns €2.3 bn of hotel assets.
andel's Hotel Berlin is Union Investment's eighth hotel investment in the German capital. The Berlin portfolio also includes the five-star Hotel InterContinental, the Radisson Blu Berlin, the Pullman Berlin Schweizer Hof and the five-star Hotel Sofitel Gendarmenmarkt.