Invesco Real Estate, the global real estate investment business of Invesco, has acquired the InterCity Hotel in central Berlin on behalf of a German separate account client. The 412-room upper midscale hotel, located near Berlin’s main railway terminus, was sold by CA Immo.
The asset, covering approximately 23,400 m², includes 10 conference rooms and 374 m² of retail/office space on the ground floor. Completed in 2013 by CA Immo, it was the first hotel in Germany to receive a platinum certificate from the German Sustainable Building Council (DGNB). The property is fully leased to IntercityHotel GmbH, a subsidiary of Steigenberger Hotels GmbH.
“Berlin is exhibiting a healthy rebound in tourism flows and we see excellent long-term demand for prime assets such as this market-leading hotel in the centre of the German capital. We are committed to identifying and investing in high-quality assets that meet our stringent criteria and fulfil our clients' requirements,” said Tina Kroll, Director, Co-Head of Transactions Germany, Austria & The Netherlands, Invesco Real Estate.
This acquisition marks the second European hotel purchased on behalf of the separate client mandate, adding to a well-diversified portfolio that now spans 15 assets across Europe. “This latest acquisition showcases both the deep relationship we have with this German separate account client and the tremendous capabilities Invesco Real Estate is able to deliver for clients looking to build a bespoke real estate investment portfolio,” commented Roman Robakowski, Director, Fund Management, Invesco Real Estate.
The InterCity Hotel is expected to provide a strong income return for the client and complements the existing sector and country allocation within their portfolio. “We are looking forward to partnering again with Intercity as a tenant to continue to maximise the asset’s value,” added Patrik Hug, Director, Alternative Investments, Invesco Real Estate.
For CA Immo, the sale is part of its ongoing strategy to focus on high-quality office properties. “We use the proceeds from sales such as this one to reinvest them in our organic development pipeline with the aim of achieving a higher return,” said Keegan Viscius, CEO of CA Immo.
Get the latest real estate news and investment insights from Europe Real Estate - your trusted source since 1999.
To receive daily or weekly updates. Sign up here!
