German investment manager Union Investment has acquired a hotel in Barcelona, Spain, which opened in November 2018 under the Barcelona 1882 brand and will be converted to a Radisson Blu as part of the acquisition process.
Financial details were not disclosed.
The deal for the hotel, located close to the basilica of the Sagrada Familia, was struck on behalf of open-ended real estate fund Unilmmo: Europa. The vendor is Partners Group, a global private markets firm, acting on behalf of its clients.
'Barcelona has always been one of Europe’s most attractive hotel markets with high barriers to entry for investors. This transaction sees Union Investment bringing the Radisson Blu hotel brand to Barcelona, once again demonstrating its expertise in proactive deal structuring in the hotel sector,' said Andreas Löcher, head of investment management hospitality at Union Investment.
'In this complex share deal transaction, operation of the hotel and the associated employees had to be carved out of the target company and transferred to Radisson Hotel Group separately,' said Christoph Eichbaum, senior investment manager hospitality at Union Investment, who headed the deal.
'Radisson Blu celebrates 10 consecutive years as the largest upper upscale brand in Europe thanks to the trust of our partners and the loyalty of our guests. This fantastic hotel further cements the brand’s leading position in this segment.
'The property marks our 10th hotel with Union Investment across Europe and we look forward to our continued successful relationship. Southern Europe is a key focus market where we anticipate significant scale in the coming few years,' said Elie Younes, executive vice president & chief development officer, Radisson Hotel Group.
The Radisson Blu Barcelona Sagrada Familia has 182 guest rooms as well as a restaurant, a bar, two meeting rooms, a gym and a pool on the roof terrace. A 25-year lease has been signed with Radisson Hotel Group. The hotel has LEED sustainability certification in Gold and an EPC A rating, meaning that the purchase is taxonomy compliant.
This is Union Investment’s second hotel in Barcelona and in the UniImmo: Europa portfolio. Back in 2013, the Hamburg-based real estate investment manager acquired the Barceló Raval. In total, Union Investment holds 80 hotels worldwide with a total value of around €5.2 bn.
Union Investment was advised on legal aspects of the deal by Linklaters and on tax matters by Pérez-Llorca, whilst the seller was advised by Cuatrecasas.
