Invesco Real Estate (IRE), the international cross-border property investment manager, is pleased to announce that it has concluded the acquisition of the Novotel City Center hotel in Munich, Germany for an investment of 39 million in an off-market deal, with financing provided by Bayern LB.
The latest acquisition was purchased as part of a sale and leaseback portfolio of five hotels from Accor and operates under the Novotel brand. IRE currently has a further two hotels under contract, which are expected to conclude later in 2010.
The Novotel City Centre is a modern four-star business hotel, opened in 2004, with 307 rooms, restaurant, bar, meeting rooms, pool and fitness center. It is located in the heart of the Bavarian state capital, just minutes from the Deutsches Museum, the Gasteig cultural center and the old town. Accor is one of the leading global hotel operators with strong branding and covenant. The acquisition is in line with IRE's hotel fund's investment strategy of building a diversified pan-European portfolio of leased mid-market hotels.
Marc Socker, Director, Hotel Fund Management at IRE comments: "We are pleased to have secured this well-located hotel, in the heart of one of Europe's best performing hotel markets. It is accretive to IRE's hotel fund and representative of the quality of hotels that we have acquired for our investors to date."
"The fund's investors benefit from the combined skills of IRE's dedicated hotel team and in-house debt financing experts, who have enabled us to source this quality asset off-market and secure an attractive financing package from Bayern LB."
Source: Invesco Real Estate