pbb Deutsche Pfandbriefbank has written a €32 million loan to finance the development of a four-star Holiday Inn hotel in Hamburg’s City Nord area.
The loan was provided to Hamburg-based developer and investor TAS Group, which is redeveloping the site of a former BP office building into a mixed-use scheme. The deal closed in December 2015 and it is understood that the loan matures in Spring 2017.
TAS bought the former BP headquarters site in 2013 and demolished the existing buildings by January 2015. The site had stood vacant since 2001. TAS is developing a new 36,000 square metre office building for German Telekom.
The adjacent 19-storey hotel will contain 297 rooms, located on Ueberseering 2, the former site of the BP headquarters car park. Bierwirth & Kluth Group will operate the Holiday Inn hotel under a franchise from InterContinental Hotels Group (IHG). The 15,900 square metre elliptical building was designed by MPP Meding Plan + Projekt.
Both the hotel and office building are scheduled to be completed by the end of 2016.
“Deutsche Pfandbriefbank is active in the market for hotel financings, on a selective basis and at selected locations. As the third-largest German market for hotel accommodation (after Berlin and Munich), Hamburg has shown an extraordinary level of growth over recent years. Likewise, City Nord is an attractive office location in Hamburg, where TAS Group has already developed other projects,” said Gerhard Meitinger, head of real estate finance Germany at pbb Deutsche Pfandbriefbank.
TAS Group is a real estate investor and developer which focusses mainly on logistics and offices. The firm owns properties in Hamburg, Hanover, Dusseldorf and Leipzig.