W.P. Carey’s Munich Lifestyle
- May 26, 2015
New York City-based W. P. Carey announced that CPA:18 – Global will fund the development of a new lifestyle hotel in the heart of Munich. CPA:18 – Global, the 17th in a series of programs sponsored by W. P. Carey, will provide approximately $85 million to complete the construction of the hotel, according to a news release.
The new upscale hotel will be located close to Munich’s city center and the Arnulfpark commercial district and will feature 290 rooms. Liran Wizman, co-founder and major shareholder of Grand City Hotels in Germany, is in charge of the development of the hotel. Wizman’s company, Europe Hotels | Private Collection will manage the property upon completion.
Scheduled to open in 2016, Munich’s new lifestyle hotel will feature a spa and fitness center, meeting and event space, underground parking, a bar and a restaurant concept developed by the Entourage Group. The property will offer easy access to public transportation and various residential and commercial destinations in the area.
“This transaction offered the opportunity for CPA:18 – Global to secure a high-quality hotel property in Germany’s wealthiest city at attractive pricing and demonstrates our ability to provide long-term development financing for the hospitality sector,” said Arvi Luoma, executive director at W. P. Carey in a statement. “The deal structure is particularly noteworthy as it highlights our ability to complete complex transactions.”
The hotel will be leased for a period of 20 years, and will initially be funded with $45 million at closing. The remaining budget will be paid out following completion of the project.