Germany's Union Investment Real Estate has signed the first acquisition on behalf of its new institutional hotel fund, which is targeting a size of €250 mln.
Germany's Union Investment Real Estate has signed the first acquisition on behalf of its new institutional hotel fund, which is targeting a size of €250 mln.
The UII Hotel No. 1 fund has signed a preliminary agreement to buy the Deutsches Museum Motel One asset in Munich.
Opened in January 2011, the hotel offers a total of 469 rooms across a gross floor area of around 10,800 m2 and has 192 underground parking spaces. The building is fully let to Motel One Germany on a long-term lease.
The parties agreed not to disclose details of the purchase price.
'Motel One is an excellent partner, with whom we have already conducted transactions in Hamburg, Amsterdam and Brussels on behalf of our retail funds. The property in Munich offers a high level of income stability because it appeals to business travellers and leisure customers alike through being conveniently located for the trade show site and city centre,' commented Christoph Schumacher, a member of the management team at Union Investment Institutional Property.
Union Investment's hotel fund focuses on budget and mid-scale hotels in Germany and Europe that offer a stable flow of income. The vehicle, which has already been placed with banks, pension schemes and insurance companies, plans to expand its portfolio through investment in good city-centre locations, Hamburg-based Union Investment said.
The company already holds 30 hotels through its open-ended property funds for retail and institutional investors, representing a total value of around €1.8 bn.
