Union Investment has secured a portfolio of four hotel development projects in Germany from Benchmark Real Estate Development via a forward purchase agreement.
Financial details were not revealed.
Three hotels in the deal, which will be built in Dresden, Oberhausen, and Eschborn, are to be transferred to the holdings of open-ended real estate fund immofonds 1. The fund is marketed exclusively in Austria.
An additional planned hotel property in Freiburg im Breisgau is being acquired for special fund UII Hotel Nr. 1.
'The portfolio developed by Benchmark meets our high acquisition criteria and we are confident of the sustainability of these development projects,' said Andreas Löcher, head of investment management hospitality at Union Investment Real Estate.
'The future outlook makes us optimistic about the hotels’ ability to generate strong long-term income.'
The 675-room portfolio contains two future Super 8-branded hotels and two planned long-stay formats by Hyatt House and Adagio Access. Long-term leases with a 25-year term have been agreed for all four development projects.
Union Investment was advised on the transaction by Clifford Chance. Law firm Bornheim und Partner and Berlin-based consultancy Colliers International Hotel supported benchmark.
