Union Investment agreed to buy two hotel projects in Poland as the seed portfolio for its new special fund that aims to raise approximately €1 billion to invest in European mid-scale properties.
The UII European fund mainly focuses on office, hotel, logistics and retail assets.
The company will buy the two hotel properties in Kraków and Katowice for approximately €86 million in total. UBM Development AG will be the developer, vendor and future operator of both the properties, which will total 527 rooms and have leases of 25 years. Completion is scheduled for autumn 2021.