Union Investment buys 4-star hotel in Munich

German fund manager Union Investment has purchased a four-star hotel in Munich for its UniInstitutional German Real Estate fund.

Financial details were not disclosed, but Hamburg-based Union Investment said the purchase price was in line with the fund's target lot size of between €20 and €50 mln.

The angeloMunich Westpark hotel was acquired from developer UBM Realitätenentwicklung and is the first hotel property to be purchased for the fund which earlier bought offices in Darmstadt and Frankfurt.

The six-storey design hotel has 207 rooms and suites as well as 78 underground parking spaces. The 13,300 m2 property comprises around 3,300 m2 of office and retail space which is fully let.

Union’s institutional real estate fund was launched in October 2012 and is targeting a volume of €500 mln within three years.

The Munich hotel deal is the latest in a string of hotel transactions carried out by Union Investment in recent weeks. Click on the links below for more details of these transactions.