From the UniInstitutional European Real Estate portfolio
Union Investment has sold the hotel at 120 Rue Royale in Brussels, which is leased to Motel One, to M&G Real Estate. The property is intended for the portfolio of the M&G European Property Fund. The parties to the agreement have agreed not to disclose the financial details. Union Investment had acquired the hotel property in 2011 as a development project for its open-ended public property fund, UniInstitutional European Real Estate, which is aimed at institutional investors, and transferred it to the fund upon its completion in 2014.
The hotel has 490 rooms and is situated near Brussels Central Station. Thanks to its central location, it is equally attractive to business travellers and tourists. It is leased to Motel One Belgium on a long-term basis.
“The hotel has performed well over the twelve-year holding period. We are now taking advantage of the current favourable market conditions in Belgium to successfully sell the property, refresh the portfolio and increase the fund’s liquidity,” said Carsten Thiel, Head of Fund Management for Open-Ended Public Property Funds at Union Investment.
Clifford Chance advised Union Investment on the legal and tax aspects of the sale. In addition, Eastdil Secured Savills acted as sell-side adviser to Union Investment.
