Hamburg-based Union Investment has acquired the four-star Angelo Hotel Munich Westpark from UBM Realitätenentwicklung.
The property was acquired on behalf of the UniInstitutional German Real Estate fund, which raised an additional €100m in a second subscription phase that ended in September.
The Angelo hotel, in Munich’s city centre, is the fund’s hotel investment. The property is let to MG Sendling Hotelbetrieb on a 20-year lease with an option to extend. ?MG Sendling Hotelbetrieb is a subsidiary of Münchener Grund Immobilien Bauträger, which is part of the Austrian UBM Realitätenentwicklung group.
The six-storey The Angelo Munich Westpark, located on Albert-Roßhaupter-Straße, has 207 rooms and suites and was opened in January 2013. It includes 3,370 m2 of office and retail space, which is fully let.
Union Investment’s hotel portfolio currently comprises 32 hotels with a total value of more than €1.8bn.
UI said that the size of the investment is consistent with the target structure of the fund. The investment focus of UniInstitutional German Real Estate is assets ranging in price from €20m to €50m; it has a target of €500m.
“We currently see good to very good sourcing opportunities in this price segment, particularly in mid-sized German cities,” said Christoph Schumacher, who is a member of the management team at Union Investment Institutional Property. “We are optimistic that our product will achieve its target size of €500m within three years.”
