Sept. 28–Shlomo Group unit SHIR Shlomo Real Estate Ltd. has expanded its cooperation with Fattal Properties (Europe) in Europe. Both companies announced that they had made a joint euro30 million (NIS 130 million) investment in acquiring the Gran Atlanta Hotel in Madrid, Spain.

The Gran Atlanta is a four-star hotel with 180 rooms. The partners will pay euro24 million for the hotel and intend to invest a further euro6 million in renovations expected to begin in the first quarter of 2017. They plan to obtain financing for 60% of the deal from a foreign bank and pay for the remainder using their own resources.

In parallel to this deal, the companies have signed a lease agreement with a company fully controlled by Fattal, which will lease the hotel for 20 years to the Leonardo chain brand, for a fixed lease of euro2.1 million and a further sum of over euro5 million that will vary based on the hotel's revenue.

Fattal and SHIR Shlomo Real Estate began cooperating in 2014, when the latter leased a 5-star hotel with almost 200 rooms in Manheim, Germany to Fattal for 25 years, for a fixed lease of euro2.4 million and lease varying on hotel revenue of over euro8.75 million.

Last week, Fattal signed an agreement to buy an hotel in Scotland for pound43.5 million and four hotels in Slovenia for euro45 million.