Art-Invest Real Estate has sealed the acquisition of the four-star conference hotel Maritim Köln on behalf of its Hotel Manage-to-Core fund.
The Cologne property was sold by Commerz Real's CFB 111 closed-end real estate fund which has owned the asset for the past 20 years.
Although financial details were not disclosed, the asset is believed to be worth around €120 mln. The deal is being financed through a syndicated loan from BayernLB, Sparkasse Köln Bonn and Stadtsparkasse München.
For the investors in CFB 111, the total return flow of funds after the sale amounts to more than 340% of the nominal investment across the entire term of the shareholding, Commerz Real said. This corresponds to a return of 8.3% per annum before taxes.
The building was completed in 1988/1989 and has seven above-ground floors with some 55,000 m2 of leasable space; it boasts around 454 hotel rooms and suites, several restaurants, an extensive conference area with 22 rooms, the largest hall on Cologne’s hotel market with a capacity of as many as 3,400 people, as well as a car park with 550 parking spaces. Operator Maritim Hotelgesellschaft has agreed a lease until the end of 2027.
'With Maritim Köln, we are purchasing the largest and the leading four-star conference hotel in Cologne; set in a unique location, it has the potential for long-term value appreciation,' said Peter Ebertz, managing director and head of hotels at Art-Invest. 'With our proven manage-to-core approach we can ensure that this conference hotel remains competitive in the long term.'
Hogan Lovells International advised Art-Invest Real Estate on legal and tax aspects of the transaction. Commerz Real was advised by Noerr.