Deutsche Finance International (“DFI”), a pan-European private equity real estate investor specialising in customer-centric real estate with €3.1 billion of assets under management announces that, in partnership with CELLS Group, a leading German real estate development, asset management and investment company, it has acquired the 32,000 sq m Sheraton Berlin Grand Hotel Esplanade from Archer Hotel Capital and Event Hotels. DFI’s pan-European value add fund is the majority shareholder in the transaction.
DFI believes that the acquisition presents an opportunity to unlock embedded value through a series of asset management initiatives that fully leverage the hotel’s prime location, utilising DFI’s expertise in operational and customer centric real estate coupled with the development skills and local expertise of CELLS Group. Current plans include a programme of works to improve and reposition the property, creating a prime new mixed-use destination comprising offices and new food and beverage outlets, alongside an upgraded hotel. A key focus of the project will be to improve the asset’s ESG credentials, targeting the highest sustainability standards.
The 394-key five-star hotel is situated in a highly attractive location near Großer Tiergarten in Berlin-Mitte, close to the Embassy Quarter and opposite the Bauhaus Archive. The district is home to many large international and domestic companies, as well as important political institutions and a significant number of restaurants, bars, shops and other amenities. The hotel also benefits from strong public transport links and is located in close proximity to a number of Berlin’s main tourist attractions including the famous Kurfürstendamm shopping avenue and the Tiergarten park.
Financing for the acquisition is provided by Berliner Sparkasse.
This is DFI and CELLS Group’s second deal together following the acquisition of the Holstenwall 20-22 value add office repositioning opportunity in central Hamburg, Germany.
Source : Deutsche Finance International (DFI):