Hamburg-based Union Investment Real Estate has made its first hotel investment in Central Europe with the acquisition of the Radisson Blu 4-star hotel in the Polish city of Krakow.
Hamburg-based Union Investment Real Estate has made its first hotel investment in Central Europe with the acquisition of the Radisson Blu 4-star hotel in the Polish city of Krakow.
The property was purchased from Vienna-based developer UBM Realitatenentwicklung for Union Investment's UniImmo: Europa open-ended real estate fund. The property is said to be worth about EUR 32 mln, reflecting a gross yield 7.5%.
The business hotel has been in operation since June 2003 and is leased until 2029. 'We are delighted to have UMB involved in this investment as a highly experienced partner. The acquisition further diversifies UniImmo: Europa's hotel portfolio and widens its international scope,' said Dr Frank Billand, member of the management board of Union Investment Real Estate responsible for the hotel segment.
Benefiting from a high level of liquidity, the real estate fund has acquired a hotel portfolio that currently comprises seven properties, including the Marriott Hotel Champs-Elysees, Arcotel Kaiserwasser in Vienna and Steigenberger Fleetinsel in Hamburg. In total, Union Investment now holds 21 hotels with some 6,350 rooms in six European countries.
Union Investment entered the Polish property market in 2008, acquiring the 3 Stawy shopping centre in Katowice in October of that year for sister fund UniImmo: Global in a deal worth around EUR 95 mln.
