- Second three-star “NOVUM Style” hotel
- Attractive location near the ECB headquarters
- Rental contract for 20 years, including two five-year extension options
Commerz Real has acquired another future “NOVUM Style” hotel complex in Frankfurt am Main for their public real estate fund hausInvest. After the previously acquired building project near the central station, the new property is at the Mayfarthstraße in Ostend, in close proximity to the European Central Bank (ECB). „The district has developed into a great area after the arrival of 2,500 ECB employees and will experience a significant appreciation within the next years”, explains Robert Bambach, Chairman of Real Estate Transactions at Commerz Real. Even at this stage, there are already more than 1,400 companies and institutions settled in the area.
After its completion in Q2 2020, the six-floor building with its approx. 6,300 square metres will feature over 179 hotel rooms and 43 parking spots. A rental contract was signed with the NOVUM Hotel Group for 20 years, with two options for an extension by a further 5 years each. The Frankfurt-based project development and construction company Adolf Lupp GmbH + Co KG is the property’s seller that will also construct the hotel until its final completion as a general contractor. They are supported in terms of project development and controlling by Gold.Stein real estate M+E GmbH & Co. KG. The final purchase price will remain undisclosed.
The design-oriented NOVUM Style Hotel will include an elevated construction and equipment quality, thus further increasing the fund’s mid-range portfolio segment. “We are really looking forward to another new-generation NOVUM Style Hotel, especially in a prosperous location such as Frankfurt. The close proximity to the ECB makes this property the ideal addition to our NOVUM Style Hotel at the central station”, comments David Etmenan, Chief Executive Officer of the NOVUM Hotel Group. The Hamburg-based, family-managed NOVUM Hotel Group currently operates 85 hotels with more than 8.000 hotel rooms throughout Europe. The Group’s revenue exceeded €100 million in 2015 is expected to grow to €120 million by the end of 2016.
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.