Fastighets AB Balder Acquires German Portfolio of 7 Hotel for EUR58m

Date: June 2018

Location: Berlin, Leipzig, Erfurt and Gelsenkirchen

Copenhagen Star Hotel, acquired by Balder in 2017

No. of Keys: 842

Seller: Bangkok, Thailand-based Fico group, according to newsletter Thomas Daily, and the hotels comprise part of a larger portfolio Fico took over in 2014 for €80m from Grand City Properties, a listed German housing specialist.

The hotels, operated under brands including Ibis, Tryp by Wyndham and Days Inn, were managed until now by Grand City unit GCH

Buyer: Fastighets AB Balder – a listed real estate company. Balder’s real estate portfolio had a value of SEK 104.1 billion (88.4) as of 31 March 2018. Balder is listed on Nasdaq Stockholm, Large Cap.

The Property portfolio consists of seven hotel properties, which have a lettable area of more than 40,000 square meters as well as the hotel rooms.

About 40 % of the rental value of EUR 4.3 million is in Berlin.

Balder, who’s CEO is Erik Selin, has signed 20 years lease agreements on all properties with Ligula Hospitality Group, which is an existing tenant at Balder in several hotels already today.

Balder acquired four hotels (450 rooms) in Copenhagen, Denmark from Hotel Property Group, in June 2017 for €100m or so.

“We would be very interested to add more investments over time,” Balder CFO Marcus Hansson said. “We have a very long term approach and hopefully we will be investing in Germany for many years to come.”

Ligula Hospitality Group AB is a fast-growing company that owns, manages and develops concepts and brands in the hotel and restaurant industry.

Today, the hotel business operates under the brands ProfilHotels, Collection by Ligula, Motel L, Good Morning Hotels, Apartments by Ligula and two hotels under a franchising agreement with the Park Inn by Radisson chain.

In addition to the hotels, Ligula also operates restaurants/bars under brands like Angelini, La Gare, Sofiehof, Statt Verandan, the Library Bar, Pipes of Scotland, the Side Bar and Plaza Grill.

Price: €58m

Price per Key: €68,884

THPT Comment: Interesting move into Germany for this listed Swedish company…and more hotels for Ligua to manage. Good price, although at this time we don’t which hotels they acquired.

First Seen: Balder website