Hamburg, 29th June 2016
Commerz Real acquires construction of new Style in Frankfurt
- Three-star „Novum Style“ hotel in central location
- 20-year lease agreement, plus two five-year extension options
- Contribution to risk spreading and diversification in the fund portfolio
Commerz Real has acquired a future hotel complex in Frankfurt am Main is to be operated as a „Novum Style“ hotel. With approx. 6,600 m², the property is located in close proximity to the central station and is expected to have 190 rooms, a sky bar as well as 39 parking spots, upon its completion before summer 2019. A lease agreement over 20 years has been signed with the Novum Hotel Group, including two additional five-year extension options for the operator. The Frankfurt-based project development company Gold.Stein real estate M+E GmbH & Co. KG is the property’s seller. The contract details will remain undisclosed. After construction by the Adolf Lupp GmbH + Co KG as general contractor, Commerz Real is going to integrate the property into the public real estate fund “hausInvest”.
„The Novum Style in Niddastraße is not just well suited for increasing the hotel number in the portfolio and so spreading risk, but also contributes to diversification as part of our engagement“, explains Robert Bambach, Chairman of Real Estate Transactions at Commerz Real. The design-oriented hotel will include a lifted construction and equipment quality, thus increasing the midrange segment within the fund’s portfolio.
The Hamburg-based Novum Hotel Group operates 84 properties with more than 8,000 rooms throughout Europe. The quickly growing family-owned company’s revenue €100 million in 2015 and is projected to grow to €120 million by the end of 2016. „We are proud to have been able to secure this excellent property in close proximity to Frankfurt’s central station for our Novum Style concept. The location fits perfectly into our expansion profile, and through our confident cooperation with all project participants, we are eagerly looking forward to a new-generation Novum Style hotel“, states David Etmenan, CEO and owner of the Novum Hotel Group.
The Commerz Real organized the acquisition as an asset deal in the form of a forward funding. This means that Commerz Real has purchased the plot with a building obligation and payment will be done gradually with every construction progress milestone. „That way, we were able to secure this attractive item early and to extremely attractive conditions for our investors“, says Bambach.