Germany's Union Investment Real Estate is investing in the development of a new Holiday Inn hotel in Frankfurt.
Germany's Union Investment Real Estate is investing in the development of a new Holiday Inn hotel in Frankfurt.
The German fund manager is buying the project in a joint venture with Austrian developer UBM Realitätenentwicklung from Talanx Immobilienmanagement/ A+S Rückversicherung .
The asset will be added to Union's UniImmo: Deutschland open-ended real estate fund. Financial details were not disclosed.
Located on the Francois Mitterand Square in Frankfurt, the four-star hotel will seek a DGNB Silver certificate and will be managed on completion by InterContinental Hotels Group (IHG). It will provide 249 rooms and 76 parking spaces.
'This is a hotel investment with good potential returns for our investors,' said Frank Billand, management board member of Union Investment Real Estate.
Construction is expected to begin in fall 2013, with completion slated for the first quarter of 2015.
It is the third project to be carried out jointly by Union and UBM, following the development of the Radisson Blu hotel in Krakow and the Crowne Plaza hotel in Amsterdam.
Union Investment told PropertyEU in an exclusive interview published in the March edition of the magazine that acquiring properties at the development stage is a key part of its strategy. The interview is attached below.
