Denmark: Union Investment has acquired the 25hours Hotel Copenhagen Paper Island from the development consortium Christiansholms Ø P/S.
The 25hours hotel forms part of man-made island located in Copenhagen’s port area. It includes 128 rooms with a restaurant, cafe, bar and three meeting rooms.
KNSA Germany has already leased the property for 25 years. It will be managed by Ennismore upon completion in March 2024. The acquisition will be added to the holdings of institutional open-ended real estate fund UniInstitutional European Real Estate.
Andreas Löcher, head of investment management hospitality at Union Investment, said: “Copenhagen is one of Europe’s top hotel markets with high barriers to entry. We are therefore delighted to be able to enter the Scandinavian hotel market with the acquisition of this flagship project. It will appeal to business travellers and tourists alike thanks to its outstanding location in a newly developed district in Copenhagen city centre, within walking distance of many visitor attractions. Paper Island will provide a high-quality user experience and is expected to attract up to 1.9 million visitors a year in the future.”
Additionally on the island, a mixed-use neighbourhood is being created which is set to include 253 apartments, retail, food and beverage venues, event spaces, and the Water Culture House.
The seller, Christiansholms Ø P/S, is a joint venture between Danica Pension and Dansh project developers Nordkranen and UNIONKUL.
Mads Nørby Hansen from Nordkranen said: “The international hotel concept 25hours is known for their unconventional designs and urban atmospheres. Each hotel is based on site-specific history and place characteristics, which harmonise with the curatorial profile of the Paper Island project. It is an island with an industrial past and a new vision for the future: an urban oasis where we, together with 25hours and other passionate entrepreneurs, will frame the city’s new quarter and destinations.”
Union Investment was advised on legal aspects of the deal by Kromann Reumert. CØ P/S was advised by Bruun & Hjejle and Catella Corporate Finance.