US REIT WP Carey's CPA 18 - Global has entered into an agreement to fund the development of a new hotel in the new HafenCity district of Hamburg, Germany.
US REIT WP Carey's CPA 18 - Global has entered into an agreement to fund the development of a new hotel in the new HafenCity district of Hamburg, Germany.
The vehicle will provide €25 mln for the construction of the property, which will be leased to the German affiliate of Spanish operator Meliá Hotels International for 25 years upon completion.
The project is being developed by Pino Sergio, while the general contractor is the Dutch Ten Brinke group.
Upon completion, which is expected in summer 2017, the hotel will consist of 207 rooms, conference space, a bar, restaurant and fitness center, underground parking and a boat dock on the adjacent canal. It be operated under the Innside by Meliá flag.
The transaction follows CPA 18 – Global’s recently announced construction, funding and acquisition of a €76 mln hotel in Munich, Germany.
Arvi Luoma, executive director of WP Carey, commented: 'This transaction is our second hotel investment in Europe in 2015 and we are delighted to add a recognized global brand with strong financial standing to CPA 18 – Global’s growing list of tenants.'
