Union Investment divests Park Plaza Berlin for €36m

Union Investment has sold the Park Plaza Wallstreet hotel in Berlin to the German Civil Service Association for around €36 mln.

Park Plaza Berlin

This price significantly exceeds recent valuations, partly due to the expiring lease offering value-add potential.
The sale is a strategic move to modernize the portfolio of the UniImmo: Deutschland open-ended real estate fund, which has held the property at Wallstraße 23-24 since 1992. 
The building, originally a commercial property from 1910, was converted to offices in 1995 and then into a hotel in 2005. It features 169 rooms and is located in a prime office and business area in Berlin-Mitte.
Madeleine Groß, head of Investment Management Hotel at Union Investment, added: “Berlin is an attractive location for national and international investors and, at the same time, a market with expansion potential for many hotel operators. Following refurbishment, the Park Plaza offers the opportunity for re-letting or can be operated as an owner-operator.”
Union Investment received advisory services from BNP Paribas Real Estate, Willkie, Farr & Gallagher, Alber & Schulze, and Heuking for this transaction.