New York-listed REIT WP Carey has bought an airport hotel in Germany in a sale-and-leaseback transaction for €30.8 mln.
New York-listed REIT WP Carey has bought an airport hotel in Germany in a sale-and-leaseback transaction for €30.8 mln.
Grand City Hotels, the operator of the Wyndham Stuttgart Airport Messe hotel, has signed a 20-year net lease with fixed annual rent rises.
The hotel, built in 1987, is nearing the end of an extensive renovation that began in 2012 and has seen it acquire a new façade and conference facilities. It is located next to Stuttgart’s Messe trade hall and the new German headquarters of Ernst & Young, which is due to open this year.
The building was acquired by CPA®:18 – Global, one of WP Carey’s managed non-traded REITs.
Arvi Luoma, executive director at WP Carey, said: ‘This transaction offered the opportunity for CPA®:18 – Global to invest in a uniquely positioned hospitality asset in one of Europe’s leading industrial and business cities. It also increased the number of German hotel assets in the portfolio, further demonstrating our strength in Central Europe and our ability to deliver tailored real estate financing solutions in this sector.’
