Peach Property reaches agreement with Novum Hotel Group
SIX Swiss Exchange-listed Peach Property Group (Zurich) has signed a 20-year lease with Novum Hotel Group (Hamburg) for the former Hoesch headquarters in Dortmund. From spring 2019 at the latest, the hotel group will operate a property with 210 rooms there under the NOVUM Select brand on a gross floor area of around 15,500 square meters.
After the building permit for the conversion of the historic building at Rheinische Strasse 167-171 and 173 in the western city center of Dortmund was granted last year, Peach Property has now been able to agree the long-term lease with the Novum Group. The latter currently manages 84 properties in Germany and other European countries. In Dortmund, the hotel group is already represented by the NOVUM Hotel Unique and NOVUM Hotel Excelsior.
The currently vacant listed property in neoclassical style (built between 1916 and 1921) will be converted into a four-star hotel while preserving the historic and listed building fabric. Tenders are currently being invited for the conversion work, which is scheduled to start at the end of 2016 and be completed by the end of 2018.
In addition to the hotel, further space of around 1,700 square meters is available in the property for complementary uses. For these, Peach Property Group is currently "in advanced negotiations with an interested party," according to the company. Overall, Peach Property Group expects annual rental income of around EUR 1.5 million when the property is fully leased. (mr)
