02/17/2016 | Company

PATRIZIA Immobilien AG has acquired the real estate development for a four-star hotel with 177 rooms in the 'Kosmos Ensemble' in Leipzig city centre. A lease agreement for 20.5 years with renewal options for a further ten years has been concluded with the Meliá Hotels Group, which is expected to open a hotel under the 'INNSIDE by Meliá' brand in the building in September. The property was purchased directly from real estate developer KSW for the specialised real estate fund 'PATRIZIA Hotel-Invest Deutschland I'. 'Leipzig's hotel market is performing extremely well and the building's unique location on the edge of the inner ring road of the city's old town makes it a very attractive investment for our customers,' explained Douglas Waibel, Associate Director at PATRIZIA. The parties agreed not to disclose the purchase price.

The seven-storey building on Dittrichring/at the corner of Gottschedstrasse is directly opposite the famous St. Thomas Church. The ambitious project on the tranquil Pleißemühlgraben involves the reconstruction of two neoclassical palaces, 'Kosmos-Haus' and 'Palais Schlohbach'. The hotel complex will integrate the two neoclassical palace buildings behind its historic façade. With its numerous bars and restaurants, the area around Gottschedstrasse is a popular night-life district. The building also includes restaurant areas, a sky bar and underground parking with 31 spaces. Centrally located around only one kilometre from Leipzig's main railway station, the hotel offers excellent local public transport connections. There is a suburban railway station, a tram stop and a taxi rank right outside the hotel.

PATRIZIA currently manages real estate assets totalling over EUR 500 million within the hotel segment. 'PATRIZIA has been continuously expanding its commitment in this asset category for some years now,' added Waibel. While investments in operator-run properties such as hotels offer particular opportunities for returns, they also require specialist know-how. As one of the leading European real estate investment companies, PATRIZIA embodies this knowledge and offers institutional investors the opportunity to invest in specialist properties requiring such expertise.

Patrizia Immobilien AG issued this content on 17 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 17 February 2016 12:37:37 UTC

Original Document: http://www.patrizia.ag/en/press/current-news/press-release-detail/patrizia-acquires-kosmos-ensemble-hotel-building-in-leipzig-city-centre/