Principal checks in to Barcelona hotel for € 41m

Investment manager Principal Real Estate Europe has acquired the Ona Hotel Terra in Barcelona for €40.5 mln from a local real estate developer on behalf of the Principal Hotel Real Estate Fund II.

The brand new 3 star hotel has 152 rooms, a restaurant, a bar, two meeting rooms and a rooftop terrace with swimming pool. According to Principal, the property received its development permit before the government signed off on the city's hotel development moratorium, adding to its value.

Jochen Schaefer-Suren, CEO of Principal’s hotel and leisure division, said: 'The Ona Hotel Terra in Barcelona is an exciting investment for our Hotelfund II as it is a very attractive value-add opportunity.

'The hotel development moratorium in Barcelona should constrain supply and provide a unique opportunity to benefit from future demand growth to all existing hotels including our new hotel in Barcelona.'

As part of the transaction a long-term lease was entered into with Ona Hotels, a family owned Spanish hotel group based in Barcelona which operates 40 hotels in 4 countries (Spain, Andorra, Morocco and Tunisia) with around 5,500 rooms.

Principal successfully sold the hotel portfolio held in its first hotel fund and secured fresh investor capital to create a warchest in excess of €400 mln for the sucessor fund, Schaefer-Suren confirmed.

Hotel fund II is focusing on strategically located, high quality 3-5 star hotels in major cities across Europe with significant value-add potential. To date, it has ammassed a total subscribed equity of €245 mln.

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