The trade union German Civil Service Association acquired the 167-room Park Plaza Wallstreet Berlin Mitte from Union Investment for €36 million [$42.3 million], or approximately €215,600 per key, according to a news release.
Union Investment said the sale price “is significantly above the most recent expert valuation. Among other things, this is due to the expiring lease and the associated value-add potential.”
An Aug. 11 article from Southeast Europe-based SeeNews reported that Croatian hotel owner and operator Arena Hospitality Group's lease for the property was ending four months early on Sept. 8. Amsterdam-based PPHE Hotel Group is the controlling shareholder for Arena Hospitality. A Google search for the hotel indicates the property is currently closed.
Hamburg-based Union Investment said the property was not considered to be a core asset in its real-estate portfolio. It expects the sale will rejuvenate the portfolio of its open-ended real estate fund, UniImmo: Deutschland.
The fund has owned the hotel since June 1992, according to CoStar.
The hotel occupies a 1910 commercial building adapted to office space in 1995, according to the release. Union Investment then converted it into a hotel in 2005. The hotel is located in Berlin's historic Mitte borough in the center of the city. It sits one block behind the south bank of the Spree River and Museumsinsel, or Museum Island, an UNESCO World Heritage Site.
Berlin saw another hotel sale in September. PGIM Real Estate acquired the 339-room Steigenberger Hotel am Kanzleramt in Berlin, near the Hauptbahnhof rail station.
Steigenberger Hotels & Resorts, part of Deutsche Hospitality, will continue to manage the hotel, which opened in 2014.