In Hamburg, Germany, local real estate company Union Investment has purchased the new Holiday Inn Hotel City Nord, which is still under development, for its institutional real estate fund UII Hotel Nr. 1. The vendor and developer of the property is the Hamburg-based TAS Group. The transfer of ownership is expected to take place in the second quarter of 2017. Engel & Völkers Commercial Hamburg advised on the transaction, and the purchase price was not disclosed.
The Holiday Inn Hotel City Nord is expected to have around 300 rooms across 18 floors. It will be leased and operated by Realotel Hamburg Betriebs GmbH, a subsidiary of Bierwirth & Kluth Hotel Management GmbH, which has entered into a franchise agreement with the InterContinental Hotels Group.
"Following investments in Munich, Frankfurt, Düsseldorf, Stuttgart and most recently Berlin, this forward deal enables us to further diversify our UII Hotel Nr. 1 fund," Christoph Schumacher, a member of the management team at Union Investment Institutional Property GmbH, said. "The City Nord location in Hamburg represents an excellent opportunity in this respect, since we believe that current supply falls well short of meeting the strong demand for business accommodation and conference rooms in the area."
Marcus Schwarz, CEO of the TAS Group, said that investor interest in this "previously underrated area" of Hamburg is high, and it is emerging as an attractive business and residential location.