Union Investment has sold the Park Plaza “Wallstreet” in Berlin to the German Civil Service Association. The sale price is around 36 million euros. It is significantly higher than the most recently determined expert value. One of the reasons for this is the expiring lease agreement and the associated value-add potential.
“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,” says Madeleine Groß, Head of Investment Management Hotel at Union Investment.
The sale is being carried out for strategic reasons and serves to rejuvenate the portfolio of the open-ended real estate fund UniImmo: Deutschland, which has owned the hotel at Wallstraße 23-24 since 1992. The building was initially built in 1910 as a commercial building, converted and expanded for office use in 1995 and then converted into a hotel in 2005. It has 169 rooms and is located in an office and business location close to the city centre in Berlin-Mitte.
Union Investment was advised by BNP Paribas Real Estate, Willkie, Farr & Gallagher, Alber & Schulze and Heuking.
