Deka Immobilien buys hotel property in Sweden (DE/SE)

Deka Immobilien GmbH has secured an attractive hotel investment in Sweden. The company acquired the city center property, which was completed in 2004, for the equivalent of around €41 million.

Constructed above Gothenburg's central station, one of the main railway junctions in Scandinavia, First Hotel G benefits from its outstanding location offering the best possible local, national and international transport links. The structurally complex and sophisticated building was acquired for the WestInvest ImmoValue open-ended mutual property fund for institutional investors.

The property comprises total lettable space of around 13,600 m² and is fully let to First Hotels for a term of 25 years. With 300 rooms, First Hotel G is among the largest and most modern hotels in Gothenburg. The purchase has been implemented as part of a sale and leaseback agreement. The seller is the Norwegian company Host Hoteleiendom AS, who owns 21 other hotel properties in Scandinavia all let to First Hotels.

As the second largest city in Sweden, Gothenburg is increasingly popular with tourists and business travelers. The city has Scandinavia's largest arena where a steadily rising number of major events are staged. Gothenburg is also one of Europe's big trade fair and conference cities, and offers a large number of local tourist attractions. At the same time, Gothenburg is an important hub for shipping, rail and air traffic in Scandinavia.

The WestInvest ImmoValue open-ended property fund primarily invests in European office properties. When it was launched in 2003, it was the first German mutual property fund aimed exclusively at institutional investors. WestInvest ImmoValue received the accolade of best fund for the third time in a row and was the only open-ended property fund in Germany to be awarded the top rating of AAA in the latest Scope rating.

The DekaBank Group is the largest provider of open-ended property funds in Germany. The two investment companies, Deka Immobilien Investment GmbH and WestInvest Gesellschaft für Investmentfonds mbH, together manage fund assets of over €19 billion. As a sister company, Deka Immobilien GmbH is responsible for the acquisition and disposal of properties, management of these assets and all other property services as well as for product development. Together with the Real Estate Lending Unit of DekaBank, the three companies form the Group's Asset Management Property business division.

Source: DekaBank

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