German fund manager Union Investment has returned to the Paris hotel market by acquiring a four-star business hotel development in La Défense. The purchase price was not disclosed.
German fund manager Union Investment has returned to the Paris hotel market by acquiring a four-star business hotel development in La Défense. The purchase price was not disclosed.
Developed by vendor Vinci Immobilier and situated on the Esplanade de Charles de Gaulle, the new hotel is fully leased to Meliá Hotels International. The Spanish hotel chain's new Paris flagship property will be added to the holdings of open-ended real estate fund UniImmo: Deutschland,. Following expected completion in the third quarter of 2014, Meliá Paris La Défense will offer 369 rooms across a total area of 24,000 m2.
The transaction comes a year after Union Investment sold the Marriott Hotel on the Champs-Elysées.
'The investment is a perfect fit with the fund’s hotel strategy, which is geared towards top destinations and major international operators,' said Frank Billand, member of the management board of Union Investment Real Estate.
The UniImmo: Deutschland real estate portfolio currently includes 10 hotels from seven different brands with a total value of around EUR 900 mln.
