Warburg-HIH Invest acquires hotel and retail property in Vienna
The Hamburg-based investment company Warburg-HIH Invest Real Estate GmbH (Warburg-HIH Invest, formerly: HIH Global Invest Kapitalverwaltungsgesellschaft mbH) just acquired a hotel and commercial building in Vienna for an institutional German investor on an individual fund mandate. The asset was sold by a group of private Austrian investors for a price of about €53 million. Raised in 1999/2000, the property was most recently refurbished in 2014, and is fully let to four tenants.
The building occupies a prominent corner location on Mariahilfer Strasse, one of Vienna's best-known high-street pitches, and lies in close proximity to Westbahnhof, a major rail hub. Also found in the immediate vicinity are numerous sights, such as St. Stephen's Cathedral or the Hotel Sacher.
The building's main tenant, occupying a lettable area of 9,137 sqm, is a hotel of the InterCityHotel brand that is owned by Steigenberger Hotel Group, and which serves both tourists and business travellers. About one third of the lettable area is occupied by a variety of retail and gastronomic venues.
“Owing to the excellent location on one of the leading high streets in Vienna, the retail and gastronomy business here is marked by high footfall. Another factor that makes the InterCityHotel in the building popular among business people and urban tourists is its superior access to local and long-haul transportation. The property's quality and appeal was further enhanced by the refurbishment in 2014,” said Andreas Schultz, Managing Director of Warburg-HIH Invest and in charge of the Transactions Management International. “As a result and because of the average lease term of more than 17 years, the investment is characterised by a high security of income.”
The seller was facilitated by Colliers International during this transaction.