Deutsche Finance International (DFI) has partnered with German real estate manager CELLS Group to buy the Sheraton Berlin Grand Hotel Esplanade from Archer Hotel Capital and Event Hotels.
Pan-European private equity real estate investor DFI said the pair have acquired the 32,000sqm hotel for 鈧�116m.
DFI鈥檚 pan-European value-add fund is the majority shareholder in the 394-key five-star hotel situated near Gro脽er Tiergarten in Berlin-Mitte.
Financing for the acquisition is provided by Berliner Sparkasse.
DFI said the acquisition presents an opportunity to 鈥渦nlock embedded value鈥� through a series of asset management initiatives.
The deal is DFI and CELLS Group鈥檚 second transaction together following the acquisition of the Holstenwall 20-22 value-add office repositioning opportunity in central Hamburg, Germany.
Daniel Filser, the head of German investments at DFI, said: 鈥淏erlin is one of Europe鈥檚 most exciting and fastest growing cities. We believe that this transaction presents us with a strong opportunity to invest in repositioning the property to unlock embedded value by creating a first class mixed use destination that incorporates offices, restaurants and bars alongside an upgraded hotel.鈥�
Dirk Ruppert, partner and CIO at CELLS Group, said: 鈥淲e are very happy to acquire another property together with DFI in Germany.
鈥淟ocated in the very heart of Berlin, this asset presents a number of exciting opportunities to enhance its offering and maximise its potential, while ensuring that hospitality continues to play a major role given the popularity of this well-located hotel.鈥�
Dominic Seyrling, director investments at Archer Hotel Capital, said: 鈥淭he sale of the hotel represents a rare win-win situation for all parties involved.
鈥淲e believe that they are the right party to bring a new life to this historically important property and we are looking forward to seeing the buyer鈥檚 plan come to fruition.鈥�
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