Pandox AB (publ) acquires hotel portfolio in Europe for €415 million


Pandox has entered into an agreement with Invesco Real Estate to acquire seven hotel properties in Europe – four in Germany, two in Austria and one in the Netherlands – with a total of 1,744 rooms.

The acquisition price amounts to MEUR 415, corresponding to approximately MSEK 4,100, on a debt free basis. The hotels are of very high quality, positioned in the upper full-service segment and operated by well-known hotel operators under long-term revenue-based lease agreements with good rental guarantee levels.

The acquisition is fully financed by a new bank loan and existing credit facilities. The acquired portfolio is expected to contribute the equivalent of approximately MSEK 140 in cash earnings 2017.

The seller is Invesco Real Estate via its European Hotel Real Estate Fund II. Pandox AB completes the acquisition of the four hotel properties in Germany together with Eiendomsspar AS as minority shareholder with 5.1 percent. This structure is considered the most efficient solution for all shareholders in Pandox.

Jones Day advised Pandox AB in its €415 million acquisition of seven hotels in Germany, Austria, and in the Netherlands with a team led by partners Ulrich Brauer and Claudia Leyendecker (picture).

Involved fees earner: Claudia Leyendecker – Jones Day; Ulrich Brauer – Jones Day;

Law Firms: Jones Day;

Clients: Pandox;