A consortium from South Korea has purchased Austria’s biggest hotel, the Hilton Vienna, for €375 mln.
Brokerage firm Meritz Securities led a consortium also comprising Hana Financial Investment and NH Investment & Securities, in the acquisition from an unnamed seller, reportedly an Austrian real estate investment company.
The deal has been financed by a mix of €151 mln equity, with the reminder in debt. The investment is predicted to deliver an annual yield of up to 7.5%.
According to reports, the buyers will make the investment via a fund to be created by Seoul-based Mastern Investment Management, and will then be sold down to institutional investors. Around €66 mln is to be ploughed into remodelling the asset.
Located in the city’s central business district, the five-star Hilton Vienna has around 660 guest rooms. The hospitality giant has been operating the hotel for nearly 40 years and last year renewed a master-lease agreement for 20 years, with a 10-year tenant renewal option for the asset.
Commenting on the deal, Tristam Larder, head of Savills regional investment advisory, EMEA, said: ‘The sale of the Hilton Vienna, a best in class asset and run by one the world’s most renowned operators, presented a ripe opportunity for South Korean investors to make their debut into this market.
‘Vienna is attracting increasing levels of cross border investment, with 64% of the total investment volume into commercial real estate so far this year attributed to international capital. We now anticipate that our clients will pave the way for a further wave of inbound exotic capital in this region.’
Savills advised the buyer.