Vienna-based investor-developer Warimpex has agreed to sell two hotels near Disneyland Paris for around €240 mln to UK-based Benson Elliot and Schroder Real Estate Hotels (SREH).
Alongside its 50% joint venture partner UBM, Warimpex said that it had reached an agreement regarding the financial aspects of the planned sale of the Vienna House Dream Castle (pictured) and Vienna House Magic Circus hotels.
The two properties were jointly developed by Warimpex and UBM Development and opened in 2004 and 2007, respectively. Together, the two four-star hotels have nearly 800 rooms and more than 1,200 m2 of conference space.
'We are very satisfied with the progress in the sales process for the two hotels, which we developed together with UBM some 15 years ago,' said Warimpex CEO Franz Jurkowitsch.
'Both hotels have enjoyed very positive development recently, so now is the right time to sell our shares. In line with our business strategy, we will use the sales proceeds to push ahead with current development projects and to acquire cash flow-generating assets,' Jurkowitsch added.
'The portfolio represents a collection of high-quality, cash-flowing assets being acquired at a substantial discount to replacement cost,' said Marc-Olivier Assouline, Benson Elliot principal.
The JV has engaged SREH (formerly Algonquin) as the portfolio’s manager.
'The hotels present opportunities to optimise value and grow income through targeted refurbishment programmes. Benson Elliot has built a strong track record in the hotel sector, with over €1 bn in hotel investments and dispositions in just the last five years. This transaction marks another partnership with the former Algonquin team, with whom we have worked successfully in the past,' Assouline added.
The closing is expected to take place before the end of the year.