Union Investment has completed the second forward purchase of a Holiday Inn hotel in Hamburg within a month with the acquisition of the new Holiday Inn Hotel City Nord.
The hotel, which is currently still in the development phase, was purchased on behalf of Union's institutional real estate fund, UII Hotel I, for an undisclosed amount.
Vendor and developer of the property is the Hamburg-based Tas Group.
In early June Union also purchased the Holiday Inn hotel development in Hamburg’s HafenCity district for its UniInstitutional German Real Estate fund from vendor and developer, ECE Projektmanagement.
The new four-star hotel will become the highest scheme in Hamburg's City Nord district once completed. It will provide around 300 rooms across 18 floors, conference facilities, a fitness centre and a restaurant over 13,500 m2.
The hotel will be leased and operated by Realotel Hamburg Betriebs, a subsidiary of Bierwirth & Kluth Hotel Management, which has entered into a franchise agreement with the InterContinental Hotels Group.
The deal is expected to close in the second quarter of 2017. Engel & Völkers Commercial Hamburg advised on the transaction.
'Following investments in Munich, Frankfurt, Düsseldorf, Stuttgart and most recently Berlin, this forward deal enables us to further diversify our UII Hotel I fund. The City Nord location in Hamburg represents an excellent opportunity in this respect, since we believe that current supply falls well short of meeting the strong demand for business accommodation and conference rooms in the area,' said Christoph Schumacher, a member of the management team at Union Investment Institutional Property.
