Commerz Real, which plans to invest around €2bn globally for its new hotel fund, has acquired its first assets in Australia.
Commerz Real Capital-Management Company Kapitalverwaltungsgesellschaft (KVG) has bought two hotels from the Ibis and Mercure brands in Brisbane for around €50m.
The seller is Singapore-based real estate investment trust CDL Hospitality Trusts.
The 3-star Ibis Hotel has 218 rooms on 17 floors; the 4-star Mercure Hotel has 194 rooms on 16 floors.
Together they have a gross floor area of nearly 39,000sqm. In addition, an underground car park has 126 parking spaces.
The German fund manager said both hotels will be operated by a subsidiary of the Accor Group.
In the medium to long term Commerz Real KVG is planning to develop a global hotel portfolio with a value of around €2bn for its CR Institutional Hotel Fund.
The fund will target an annual return of about 6% for professional and semi-professional investors.
Johannes Anschott, a board member at Commerz Real, said: “In the meantime hotel real estate especially in top locations is, because of its attractive risk-return profile, in ever greater demand from insurers and pension funds.”
