Union Investment Sells Berlin Hotel to German Civil Service Association

Union Investment has completed the sale of the Park Plaza “Wallstreet” Hotel in Berlin to the German Civil Service Association for approximately €36 million, a figure notably above the property’s most recent expert valuation. The price premium is linked to the expiring lease, which offers new value-add opportunities for the buyer.

“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,” said Madeleine Groß, Head of Investment Management Hotel at Union Investment.

The sale is part of a broader strategy to rejuvenate the portfolio of UniImmo: Deutschland, the open-ended real estate fund that has held the asset since 1992. Originally built in 1910 as a commercial property, the building was converted and expanded for office use in 1995 before being redeveloped into a hotel in 2005. Today, it comprises 169 rooms and is situated in Berlin-Mitte, a central office and business district.

Union Investment was advised on the transaction by BNP Paribas Real Estate, Willkie, Farr & Gallagher, Alber & Schulze, and Heuking.