2nd April 2020, Road Town, Tortola, BVI
Eastern Property Holdings (“EPH” or the “Company”) announces the successful signing of the acquisition of 89.9% of interest in the Nhow Hotel in Berlin, Germany from the Jesta Group (“Jesta”) and its partner. The parties to the transaction agreed to not disclose the acquisition price to the public. Closing of the acquisition will take place tomorrow.
The property had been completed in 2010 and comprises approximately 20,160 sqm, including 304 rooms, 86 underground & 39 surface parking spaces, a spa, restaurant and two music studios. Located in the popular, upcoming area of Friedrichshain, the real estate is notable for its extraordinary, modern construction and desirable waterside location. The award-winning architecture of the building was designed by Berlin architect Sergei Tchoban.
The property is leased in its entirety to Nhow Hotel, part of the NH Hotel Group, the third largest business hotel group in Europe. The lease has over 15 years left with the option to extend by a further 10 years.
This acquisition is the latest in EPH’s on-going strategy to diversify its portfolio across major Western European markets, adding attractive real estate investments in stable markets with strong long-term economic outlook. EPH believes that the long term outlook of Berlin is attractive both from a business and tourism market. Such an addition to the EPH portfolio creates long term value for the Company’s shareholders.
The disposition is in line with Jesta’s strategy of purchasing properties in need of restructuring and translating that into added value to its shareholders. Jesta looks forward to its continued presence in all major cities in Western Europe, the United States and Canada and is currently aggressively pursuing new opportunities.
Berlin is Germany’s capital and its largest employment hub. It is the most attractive tourist destination in Germany, with 12.9m arrivals and 31.3m overnight stays recorded in 2019. The meetings and congress market generated around 8.1m overnight stays in Berlin in 2018 and is expected to grow further due to new exhibition halls with a capacity of 200k sqm.
EPH has confidence in the Berlin hotel market, especially in the up and coming Mediaspree area, as well as the long-term performance of the NH Hotel Group. The building is in an ideal location. Both Jesta and EPH are pleased to have succeeded in completing the transaction under terms that were mutually and equally beneficial.
Eastern Property Holdings Ltd. is an investment company listed on SIX Swiss Exchange which holds interest in office, residential and retail properties. EPH is managed by Valartis International Ltd. a wholly-owned subsidiary of Valartis Group AG. Additional information on Eastern Property Holdings is available by contacting Anna Bernhart Tel: +41 44 503 5400.
Jesta Group manages a diversified portfolio of prime real estate assets in the commercial, residential, retail and hospitality sectors in Europe and North America. With headquarters in Montreal and offices in Miami, London and Paris, Jesta is well placed to capitalize on strategic opportunities in some of the world’s most desirable locations. For more information, please visit: www.jesta.com or contact Eric Charette at +1-514-925-5100.