Union Investment has completed the sale of the Hotel Park Plaza “Wallstreet” in Berlin to the Deutschen Beamtenwirtschaftsbund for approximately €36 million, a figure that exceeds the property’s most recently assessed market value.
The price premium is attributed in part to the hotel’s expiring lease, which creates value-add potential for future operators.
“Berlin is an attractive location for national and international investors and at the same time a market with expansion potential for many hotel operators. After a refurbishment, Park Plaza offers the option of re-letting or can be operated as an owner operator,” said Madeleine Groß, Head of Investment Management Hotel at Union Investment.
The transaction forms part of Union Investment’s strategy to rejuvenate the portfolio of its open-ended real estate fund UniImmo: Deutschland, which has held the property since 1992. Originally constructed in 1910 as a commercial building, the asset was repurposed for office use in 1995 before being converted into a 169-room hotel in 2005.
Located at Wallstraße 23-24 in Berlin-Mitte, the hotel benefits from a central business district position near the city centre, strengthening its appeal for both investors and hotel operators.
Union Investment was advised on the transaction by BNP Paribas Real Estate, Willkie Farr & Gallagher LLP Germany, ALBER&SCHULZE Baumanagement and HEUKING.
