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Non-traded REIT, CPA: 18 has entered an agreement with investment company W P Carey to provide €76m in funding to complete the construction of a new lifestyle hotel in Munich, Germany.

Grand City Hotels co-founder Liran Wizman has undertaken the development of the hotel. Upon completion, Wizman’s other company Europe Hotels Private Collection will manage it.

W P Carey executive director Arvi Luoma said: "This transaction offered the opportunity for CPA: 18 Global to secure a high-quality hotel property in Germany’s wealthiest city at attractive pricing and demonstrates our ability to provide long-term development financing for the hospitality sector.

"The hotel is under construction near Munich’s city centre, and is situated close to Arnulfpark commercial district."

"The deal structure is particularly noteworthy as it highlights our ability to complete complex transactions. We are delighted to add to the global diversity of CPA :18 Global’s portfolio with this project, our first hotel investment in Europe."

The hotel is under construction near Munich’s city centre, and is situated close to Arnulfpark commercial district. The 290-room upscale hotel will cater to the needs of business and leisure travellers.

The hotel will feature a fitness centre, underground parking, conference facilities and a bar and a modern restaurant concept that was developed by Entourage Group, a turn-key food and beverage service provider.

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Initially, €40m will be provided for development of the hotel, and the rest of the amount will be given through the completion and opening of the hotel.

Liran Wizman said: "W P Carey’s global investing perspective and experience was invaluable in enabling us to agree to this deal.

"Their ability to deliver on the required structure, along with their long-term investment philosophy, made them the ideal partner for us."


Image: New upscale lifestyle hotel in Germany. Photo: courtesy of PR Newswire.