First Motel One in Brussels
UniInstitutional European Real Estate about to acquire the companies owning the first Motel One in Brussels in 2014.
Union Investment was granted a call option on the shares of the companies Royal 120 New Building SA and Royale 120 SA, the two companies owning the first Motel One hotel in Brussels.
Motel One was granted a long leasehold rights contract on the 490 rooms hotel developed by BESIX Real Estate Development (BESIXRED) and constructed by BESIX, the largest Belgian construction group.
If Union Investment decides to exercise the option, the transfer of the shares to the open fund UniInstitutional Real Estate will happen in 2014, after the building is delivered.
This transaction will be the fourth investment of Union Investment in the budget and midscale hotel segment « Motel One is one of the most attractive hotel concept in this segment. We would be glad to assist them in the expansion of their activities in other countries », says Dr Frank Billand, executive member of Union Investment Real Estate GmbH. The hotel portfolio of Union Investment comprises the Motel One of Hamburg Neustadt and two Holiday Inn Express in Hamburg and Dresde.
The first Belgian Motel One is being constructed in Brussels, rue Royale, nearby the Central station at immediate vicinity of the Grand Place and the European Quarter. Philippe Weyland, Managing Director at Motel One Group says « We are very satisfied Union Investment accompanies the european expansion of Motel One in this project. Thanks to the excellent cooperation between our companies, we feel we have a solid partner working besides us ».
Next to the 14.075 m² (490 rooms) of hotel area, the new complex comprises a retail area of 210 m² and a public parking of 199 units (operated by an independent operator, BESIX PARK, under a leasehold contract).
« We are very proud to host the first Motel One in the European Capital, says Gabriel Uzgen, Managing Director BESIXRED. The realisation of this fantastic project in this exceptional location was made possible thanks to the effective collaboration between the innovative approach of Motel One to propose affordable hotel solutions and the hotel development expertise of BESIXRED. The interest of Union Investment confirms the reliability and the strength of the group Motel One and their confidence in BESIXRED at this stage of the development. We are convinced we will have other opportunities to collaborate with Motel One and Union Investment ».
BESIXRED was advised by CBRE, Allen&Overy and Liedekerke; Union Investment was advised by Clifford Chance and RSM International.