ECE Real Estate Partners has teamed up with developers Soravia and Denkmalneu to purchase the Bonvecchiati building in Venice.
Besides the Palace Bonvecchiati, the complex consists of the Hotel Bonvecchiati and the Residenzia Bonvecchiati as well as additional retail areas.
ECE is acquiring the property through its European Lodging Recovery Fund.
As part of the €100 million investment, planning is now underway for renovation and redevelopment during the early market recovery. ECE and its partners are looking at repositioning the hotel and placing it in the operational hands of an international brand.
“Having acquired a seed asset in such a unique location for our first ECE hotel fund underlines our determination to use all available resources in the ECE Group to repeat the previous successes achieved for our investors in the ECE shopping centre funds now also in the lodging sector. We see very good opportunities for our approach in the hotel real estate market right now,” Volker Kraft, managing partner of ECE Real Estate Partners, is pleased.
The Luxembourg-based ECE European Lodging Recovery Fund is targeted at institutional investors such as insurance companies, sovereign-wealth funds, and pension funds. It intends to invest approx. €300 million of equity into select hotel assets. Current investors are the family office of the Otto family and the fund management team.