The Cologne-based multi-family office for real estate assets DERECO sold the Holiday Inn Express Düsseldorf City hotel in Dusseldorf to PATRIZIA AG.

The hotel is operated by the Foremost Group. It was completed in 2015 and boasts a total of 164 rooms on six floors plus 46 underground parking bays. Located in the heart of Dusseldorf, this well-connected hotel is an ideal basis for business travellers and tourists to explore the region.

DERECO acquired the property by way of a forward deal from the INVESTA project developers in 2014. It was transferred as a turnkey estate upon completion in 2015.

“Closing this transaction means that our core portfolio has almost entirely molten down. You may call it early hours but it’s foreseeable that this portfolio and the properties contained in it have performed significantly better than we had initially assumed,” says Jörg Kohlhaus, Head of Investment & Asset Management at DERECO.

For this transaction, DERECO received legal advice from the Berlin branch office of the TaylorWessing firm. It was agreed not to disclose the selling price.

“This sale perfectly reflects our new investment strategy for value-adding properties and project developments. The proceeds will be directly reploughed into new properties in Hamburg and Saarbrücken,” says Tassu M. Degen, DERECO’s Managing Director.

For additional purchases, DERECO is searching the German market for existing properties and plots with a potential to increase in value. Relevant market segments include offices, housing, retail and hotels. In addition, DERECO is looking for developable land for new projects. Investment sums range between a minimum of EUR 20m for individual properties and up to EUR 500m for large neighbourhood projects. Besides top locations across the country, prospering cities and metropolitan areas with a population of at least 250,000 will be considered.