Union Investment has made its first acquisition outside Germany for its UII Hotel Nr. 1 special fund, buying the ibis & ibis budget Wien Messe complex in Vienna.
Union Investment has made its first acquisition outside Germany for its UII Hotel Nr. 1 special fund, buying the ibis & ibis budget Wien Messe complex in Vienna.
The complex was developed and sold by of S+B Gruppe. The investment volume was not disclosed.
The property has a lettable area of 14,777 m2, with hotel space occupying 71% of the space and offices over 21%. There are also 140 parking spaces.
The hotel portion, which offers 158 ibis rooms and 250 ibis budget rooms, is fully let to Accor with a remaining lease term of 10.25 and 11.25 years, respectively. The office space is around 46% let.
Union Investment was represented by TPA Horwath and Schönherr RA.
'Vienna is an attractive location for hotel investors due to demand from both business travellers and tourists. We are delighted that our long-term relationship with S+B Gruppe has now allowed us to access the high-growth budget segment in Vienna,' said Christoph Schumacher, a member of the management team at Union Investment Institutional Property in Hamburg.
