COVIVIO ACQUIRES FOUR HOTELS IN MILAN FROM INVEST HOSPITALITY

French real estate investor Covivio, through its subsidiary Covivio Hotels, has acquired a portfolio of four, 4-star hotels (c. 900 rooms) in Milan, Italy, through a sale and leaseback transaction from Italian owner-operator Invest Hospitality, for €217 million (c. €241,000 per room). All properties have recently been fully renovated and are situated in the Scalo Farini area, in Bicocca, in Corso Buenos Aires, and in Piazzale Loreto. The 21-year leases provide a guaranteed minimum rent of 6% plus a revenue-linked variable component that is expected to increase the yield to about 7%.