Union Investment has secured the Holiday Inn hotel development in Hamburg’s HafenCity district for its UniInstitutional German Real Estate fund.
The vendor and developer of the hotel is ECE Projektmanagement.
The turnkey purchase, whose amount was kept confidential, is subject to standard closing conditions and will take effect on completion of the hotel in 2018.
The four-star hotel will offer 268 rooms and 29 parking spaces and will be operated by lessee and franchisee Tristar, which already runs one Holiday Inn and two Holiday Inn Express hotels in Germany.
'Our strategy for the fund is to achieve broad diversification in terms of products and locations. The acquisition of a second hotel property for the portfolio reflects our commitment to that goal,' said Christoph Schumacher, a member of the management team at Hamburg-based Union Investment Institutional Property. 'Hamburg remains an attractive destination for business and leisure travellers alike, and the Holiday Inn in HafenCity is set to benefit from that demand,' added Schumacher.
Work is due to begin in mid-2016, with completion scheduled for mid-2018.
