Warimpex Finanz- und Beteiligungs AG and UBM Realitätenentwicklung AG are selling the InterContinental hotel in Warsaw to WestInvest InterSelect, a retail real estate fund of Germany’s DekaBank group. The contract negotiations were concluded successfully yesterday. The sale contract is still pending subject to the fulfilment of the standard closing prerequisites for such real estate transactions in Poland. The deal is expected to close at the end of 2012. The selling price, which can still rise depending on the performance of the hotel, is over EUR 100 million, and well above the asset’s book value.
Warimpex and UBM developed the core property together, and each most recently held 50 per cent of the five-star hotel. In order to profit from the very positive development of the hotel in the coming years, Warimpex and UBM will be leasing the hotel back under a fixed agreement and will run the hotel under the brand InterContinental until 2027.
“The successful conclusion of this deal is a positive signal from the transaction markets, and again affirms our commitment to the Polish market. For Warimpex, the sale of this outstanding property is especially encouraging because we acquired the first pieces of land back in 1997 and were able to lay the foundation for the successful project by preparing these plots for construction. This investment is now having a positive effect on our earnings and liquidity position in 2012,” said Franz Jurkowitsch, CEO of Warimpex.
For UBM CEO Karl Bier, it is important to be able to still participate in the future development of the hotel: “By retaining ownership of the operating company until 2027, we have secured future profit potential. This lease structure has proven its value in many hotel transactions already, brings the seller liquidity for new investments and provides the new owner with a fixed return independent of market risk and the operation of the hotel.”
The five-star InterContinental hotel in Warsaw was opened in 2003 and is a prime example of successful real estate development. Nine years later, the establishment is not only one of the best but also one of the most profitable hotels in the Polish capital – as evidenced by numerous awards. Thanks to its excellent location in the central commercial district of Warsaw, it is a popular destination for tourists and business travellers. And with the prominent cutout in its facade, the InterContinental is also a highlight in the Warsaw skyline.
The hotel has 414 rooms, suites and apartments, numerous restaurants and bars, and twelve spacious conference rooms with state-of-the-art equipment on an area of 1,100 square metres. The 43rd and 44th floors of the hotel offer guests a wellness centre with a swimming pool, fitness rooms, sauna, steam bath, whirlpool and a spa area with a view over the city. The InterContinental Hotels Group will remain responsible for managing the hotel after the change in ownership.
Fonte : CS di Warinpex