Union Investment has acquired a hotel in Barcelona, Spain, which opened in November 2018 under the Barcelona 1882 brand and will be converted to a Radisson Blu as part of the acquisition process. The hotel is located close to the famous basilica of the Sagrada Familia. Due to completion in just a few years after being under construction for 144 years, the basilica is the most visited landmark in Barcelona. The acquisition is being made on behalf of open-ended real estate fund Unilmmo: Europa. The vendor is Partners Group, a leading global private markets firm, acting on behalf of its clients.
Andreas Löcher, head of Investment Management Hospitality at Union Investment, said: “Barcelona has always been one of Europe’s most attractive hotel markets with high barriers to entry for investors. This transaction sees Union Investment bringing the Radisson Blu hotel brand to Barcelona, once again demonstrating its expertise in proactive deal structuring in the hotel sector.”
“In this complex share deal transaction, operation of the hotel and the associated employees had to be carved out of the target company and transferred to Radisson Hotel Group separately,” explains Christoph Eichbaum, Senior Investment Manager Hospitality at Union Investment, who headed the deal.
“Radisson Blu celebrates 10 consecutive years as the largest upper upscale brand in Europe thanks to the trust of our partners and the loyalty of our guests. This fantastic hotel further cements the brand’s leading position in this segment. The property marks our 10th hotel with Union Investment across Europe, and we look forward to our continued successful relationship. Southern Europe is a key focus market where we anticipate significant scale in the coming few years,” said Elie Younes, Executive Vice President & CDO, Radisson Hotel Group.
Valerie Schuermans, vice president, Business Development, Radisson Hotel Group, added: “This signing marks an important moment for our company, establishing our first hotel in Barcelona – such a cosmopolitan and inspiring city – and at the same time strengthening our partnership with Union Investment. With this transaction, Radisson Hotel Group demonstrates its confidence in the market and its commitment to expanding presence across Spain, further supported by its recent and upcoming openings in Sevilla, Bilbao, and Madrid.”
The Radisson Blu Barcelona Sagrada Familia has 182 guest rooms as well as a restaurant, a bar, two meeting rooms, a gym, and a pool on the roof terrace, which provides a breathtaking view of the Sagrada Familia. A 25-year lease has been signed with Radisson Hotel Group. The hotel has LEED sustainability certification in Gold and an EPC A rating, meaning that the purchase is taxonomy compliant.
This is Union Investment’s second hotel in Barcelona and in the UniImmo: Europa portfolio. Back in 2013, the Hamburg-based real estate investment manager acquired the Barceló Raval, whose elegant curves make it one of the most stylish addresses in Barcelona. In total, Union Investment holds 80 hotels worldwide with a total value of around EUR 5.2 billion.
Linklaters’ team was led by partner and head of its Spanish Real Estate practice Adolfo Guerrero, and included Real Estate managing associate Raquel Blanco, associate Santiago Alfonsetti, and associate Víctor de Elejabeitia.
Pérez-Llorca’s team was led by Tax partner José Ramón Vizcaíno, and Tax associates Paulino González-Fierro and Víctor Tenorio.
Cuatrecasas advised Partners Group with a team made up of Corporate/M&A partners Juan Grima (Valencia) and Raimundo Segura (Barcelona), supported by a multidisciplinary professional team from the firm.