Commerz Real KVG Acquires First Two Properties in Australia for Hotel Special Fund

Date: January 2018

Location: Brisbane, Australia. The two hotels are located in Brisbane’s central business district, at 27-35 Turbot Street and at 85-87 North Quay on the River Brisbane.

They are connected to one another by their basement floors, thus allowing for the supply of goods and utilities via a common facility. The 3-star Ibis Hotel has 218 rooms on 17 floors; the 4-star Mercure Hotel has 194 rooms on 16 floors. Together they have a gross floor area of nearly 39,000 square metres. In addition, an underground car park has 126 parking spaces.

Name: Ibis & Mercure Hotels – three & four star.

No. of Keys: 412

Seller: CDL Hospitality Trusts from Singapore, owners of 20 hotels with 5,414 rooms in Singapore, Australia, New Zealand, Japan, UK, Germany and two resorts in Maldives. They recently acquired the Lowry in Manchester, UK. CDL Hospitality Trust is managed by Millennium & Copthorne.

Buyer: Commerz Real Commerz Real Capital-Management Company (Kapitalverwaltungsgesellschaft, KVG) has acquired the first assets for its “CR Institutional Hotel Fund”. Commerz Real was advised on the transaction by the Australian Pro-Invest Group.

In the medium to long term Commerz Real KVG is planning to develop a global hotel portfolio with a value of approx. two billion euros and an annual target return of ca. 6 per cent for professional and semi-professional investors.

“In the meantime hotel real estate especially in top locations is, because of its attractive risk-return profile, in ever greater demand from insurers and pension funds,” explains Johannes Anschott, the member of the board of managing directors of Commerz Real responsible, among other things, for institutional business.

Accor have have agreed a master lease to April 2021, just three years left to run

Price: Aus$77m

Price per Key: Aus$186,893

THPT Comment: This departure from their home territory of Germany & Europe is interesting. Commerzreal, part of Commerzbank has €32bn of assets under management spanning a wide range of real estate, hotels being a small part of their portfolio.

First Seen: Commerzreal website