Benson Elliot Capital Management (”Benson Elliot”), the leading private equity real estate firm, has completed the refinancing of the Deutsch-Japanisches Center in Düsseldorf, incorporating the highly regarded 5-star Nikko Hotel, almost two years ahead of its scheduled maturity. The €70 million transaction, undertaken with Eurohypo Aktiengesellschaft, represents one of the largest hotel financings to be completed in Europe this year.
Benson Elliot acquired a controlling interest in the Deutsch-Japanisches Center in 2007, in partnership with an affiliate of Event Holding, a leading hotel owner/operator based in Cologne, on behalf of Benson Elliot Real Estate Partners II. The mixed-use complex is located in Düsseldorf’s city centre, close to the banking district and the renowned shopping boulevard the Königsallee. Following the completion of the recent refurbishment programme the property comprises the Nikko Hotel (with 386 rooms), the Nikko Convention Center (accommodating up to 1,000 delegates), 7,500 sqm of office and retail space and a 560 bay underground car park.
Joseph De Leo, Partner & Head of Portfolio Management at Benson Elliot, commented: “Hotel markets, especially the popular trade fair destination of Düsseldorf, have gained strength in 2010 and our recently completed value-add programme at the Nikko Hotel has positioned the property to take advantage of improving market conditions. This was the right time to secure attractive long-term funding for a great asset. Eurohypo demonstrated strong local market knowledge and an astute early commitment to this transaction. We’re pleased to have them as our funding partner.”
Peter Kleinhütten, Team Leader, Structured Finance at Eurohypo Dusseldorf, added: “The refinancing of the Deutsch-Japanisches Center is a landmark transaction in the European hotel market for 2010. It also illustrates the liquidity for strongly performing assets and the level of support for highly regarded clients, such as Benson Elliot.”
Benson Elliot was advised by Clifford Chance, Ernst & Young and Deloitte.
For further information:
Marc Mogull, Managing Partner
Joseph De Leo, Partner
+44 (0) 20 7808 8900
Dido Laurimore / Stephanie Highett
+44 (0) 20 7831 3113
About Benson Elliot
Benson Elliot was founded in 2005 to realise a vision for successful real estate investing in a changing market environment. Conceived alongside a group of leading institutional investors, the firm is dedicated to delivering sustainable investment out-performance through market cycles. The firm launched its inaugural investment vehicle, Benson Elliot Real Estate Partners II, L.P., in April 2006, closing in August 2006 with commitments of more than €335 million.
In early 2009, the Company announced its second oversubscribed fund, Benson Elliot Real Estate Partners III, L.P., with commitments of over €500 million. All funds managed by Benson Elliot are fully discretionary.
Benson Elliot is led by Marc Mogull and Trish Barrigan. Mr. Mogull established, and for seven years managed, the Doughty Hanson & Co European Real Estate Fund. Ms. Barrigan was previously Managing Director and Head of Global Real Estate Investments for Dubai Investment Group, moving from Goldman Sachs where she spent ten years primarily in principal investing and portfolio management for the Whitehall Funds.
The Benson Elliot team includes senior industry professionals with experience in sourcing, underwriting and managing real estate investments across Europe and across all major property sectors. Highlighting the firm’s successes Private Equity Real Estate named Benson Elliot “European Emerging Firm of the Year” for 2006. In 2008, Private Equity Real Estate named the firm as one of ten emerging managers globally it expects “to shape the private equity world around them.” Benson Elliot was further honoured by its peers with the 2009 European Fundraising of the Year (Private Equity Real Estate).