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Warimpex and UBM have concluded negotiations with a fund of the DekaBank group.
Real estate companies Warimpex and UBM have concluded their negotiations with WestInvest InterSelect, a real estate fund belonging to the DekaBank group, concerning the sale of the InterContinental hotel in downtown Warsaw. The transaction is expected to be closed towards the end of the year. The value of the agreement, which could yet rise, depending on the performance of the facility, amounts to more than €100 million. “The successful conclusion of this deal is a positive signal from the transaction markets and again affirms our commitment to the Polish market. This investment is now having a positive effect on our earnings and liquidity position in 2012,” stated Warimpex CEO Franz Jurkowitsch. The sellers will be leasing the hotel back under a fixed agreement and will run it under the InterContinental brand until 2027. “By retaining ownership of the operating company until 2027, we have secured future profit potential,” UBM CEO Karl Bier said in a statement. The lease structure has already proven its value in many hotel transactions. It brings the seller liquidity for new investments and provides the new owner with a fixed return that is independent of market risk and the operation of the hotel, Mr Bier added. The InterContinental hotel in Warsaw opened for business in 2003 and is one of the most iconic elements of the capital’s skyline. The skyscraper comprises 414 rooms, suites and apartments and its 43rd and 44th floors house a wellness center. |
