Union Investment is entering the Irish hotel market with the acquisition of a Premier Inn hotel development in Dublin’s Docklands district.
The Hamburg-based real estate investment manager is buying the asset from developer Glenveagh Properties. The purchase price was not disclosed.
The hotel will offer 9,936 m2 of rental space and a total of 262 rooms spread over nine floors. Construction is expected to begin in July of this year, with completion scheduled for autumn 2023. The hotel is already let to Premier Inn on a 25-year lease.
Union Investment has been active in the Irish office property market since 2015. The company recently entered the Irish housing market by acquiring the 8th Lock residential project in Dublin.
‘We are expecting demand for hotels to recover by 2023 – the year of completion – at the latest and we intend to further expand our high-quality portfolio through targeted acquisitions. It currently comprises around 80 hotels. We will focus primarily on core products with resilient concepts and operators. The planned Premier Inn hotel is a core property in one of Europe’s best performing hotel markets,’ said Andreas Löcher, head of Investment Management Hospitality at Union Investment.
The acquisition will be added to the portfolio of the UniInstitutional European Real Estate fund. BNP Paribas Real Estate acted as advisor to Union Investment.