Union Investment has signed a contract to take over the ibis Styles hotel being built in Kraków and the Mercure hotel being built in Katowice. The total value of both transactions amounted to approx. €86 million, the company said. The hotels will go to the portfolio of the new UII EuropeanM special fund focused on European commercial real estate.
“Both properties together will offer 527 rooms. The developer, seller and future operator of the objects whose construction is to be completed in the fall of 2021 is UBM. In both cases the lease agreement will be in force for 25 years,” the communiqué reads.
The acquired development projects will be the first in the portfolio of the new UII EuropeanM fund, which will invest mainly in the office, hotel, logistics, and commercial real estate.