Commerz Real acquires a further hotel development in Frankfurt am Main for hausInvest
Second three star hotel from the “Novum Style” brand
Attractive location close to the headquarters of the European Central Bank
Lease agreement of 20 years plus two five-year extension options
Commerz Real has purchased a further hotel complex – which is still to be constructed – from the “Novum Style” brand in Frankfurt am Main for its open-ended real estate fund hausInvest. Following the recent acquisition of a construction project in the vicinity of the main railway station, the most recent purchase is located in Mayfarthstraße in the city’s East End district, close to the headquarters of the European Central Bank (ECB).
“The district has seen a rapid development since the arrival of the 2,500 ECB employees, and in the coming years it will experience further revitalisation”
explains Robert Bambach, the board member at Commerz Real responsible for real estate transactions. More than 1,400 companies and institutions have already located to the neighbourhood.
Following its completion in the first six months of 2020, the six-storey building with a total lettable area of approx. 6,300 square metres will have 179 hotel rooms and 43 parking spaces. A lease agreement of 20 years plus an extension option of two times five years has been concluded with the Novum Hotel Group. The seller is the Frankfurt-based project development and construction company Adolf Lupp GmbH + Co KG. The construction project is to be supported by Gold.Stein real estate M+E GmbH & Co. KG. It was agreed that confidentiality be maintained on the purchase price.
The design-oriented Novum Style Hotel will have an upmarket construction and fit-out quality, thus further enhancing the mid-range segment in the fund’s hotel portfolio. “We look forward to an additional Novum Style Hotel of the latest generation in this thriving location. Its position in the immediate vicinity of the ECB complements perfectly our Novum Style Hotel at the central station,” comments David Etmenan, the managing partner of the Novum Hotel Group. The Hamburg-based family-managed Novum Hotel Group owns 85 hotels throughout Europe with more than 8,000 hotel rooms. The revenues of the expanding group of companies was more than 100 million euros in 2015 and is set to rise to approx. 120 million euros by the end of 2016.
The acquisition by Commerz Real was structured as an asset deal in the form of a forward funding. This means that Commerz Real has initially bought the plot of land with an obligation to build and the real estate will then gradually be paid for in line with the progress of construction work.