pbb Deutsche Pfandbriefbank has provided the financing for the construction of a new hotel building in Hamburg's City Nord. The approximate €32m loan was provided to a property company managed by TAS Group (TAS KG). The transaction was closed in December 2015. Construction of the building is expected to be finalised by the end of 2016.
The 19-storey hotel tower is to be built on the site of a former BP building and planned to have approximately 15,900 m² of gross floor area. The elliptical building was designed by MPP Meding Plan + Projekt. The hotel will have just under 300 rooms, a conference area of more than 730m², as well as restaurant and bar facilities. Bierwirth & Kluth Group will operate the 4-star Holiday Inn hotel under a franchise from InterContinental Hotels Group (IHG).
The proximity to the Hamburg airport and the close vicinity to the corporate headquarters of renowned companies makes the hotel's location particularly attractive. Moreover, it is close to the 'Stadtpark', Hamburg's biggest public park.
Gerhard Meitinger, head of real estate finance Germany at pbb Deutsche Pfandbriefbank, said: "pbb Deutsche Pfandbriefbank is active on the market for hotel financings, on a selective basis and at selected locations. As the third-largest German market for hotel accommodation (after Berlin and Munich), Hamburg has shown an extraordinary level of growth over recent years. Likewise, City Nord is an attractive office location in Hamburg, where TAS Group has already developed other projects."
