Union Investment has agreed to acquire two planned hotel properties in Kraków and Katowice with a total of 527 rooms. The developer, vendor and future operator of the two midscale hotels, which are scheduled for completion in autumn 2021, is UBM. The purchase price of the ibis Styles-branded hotel in Kraków and Mercure-branded hotel in Katowice is approximately €86m. Both leases run for 25 years. The development projects have been acquired as the seed portfolio for the new special fund UII EuropeanM.
The ibis Styles hotel in Kraków will have 259 rooms and 166 underground parking spaces. Located on Mogilska street, the property enjoys easy access to the main railway station and the historic city centre. In addition, there is a direct link to Tauron Arena, the largest multifunctional venue in Poland, which has a capacity of 15,000 people.
Upon completion, the Mercure hotel in Katowice will offer 268 rooms and 70 parking spaces. The property comprises some 14,500m² of rental space, including 2,700m² of high-quality office space in the immediate vicinity of the main station and Katowice city centre. The asset benefits from the close proximity to Galeria Katowice shopping centre, which contains 250 outlets in total, and Katowice International Congress Centre, which includes a multifunctional venue with a 10,000-person capacity.
“UII EuropeanM is a logical strategic addition to our range of products for institutional customers. The risk-return profile of the fund is designed to make it possible to exploit investment opportunities in European real estate markets that are not covered by a traditional core profile,” said Wolfgang Kessler, a member of the Management Board of Union Investment Institutional Property.
