Deutsche Immobilien Invest has purchased the A-Rosa Grand Spa resort hotel on behalf of a new closed-end investment fund which will be marketed to investors in the coming months.

Located on the island of Sylt, in the North Sea, the five-star hotel asset was developed by Deutsche Immobilien Invest's parent company, Deutsche Immobilien.

The hotel opened its doors at the end of April last year and is operated by the A-Rosa hotel group under a 25-year lease agreement. The property offers 177 rooms and suites and generates an annual rental income of EUR 4 mln.

The acquisition was made on behalf of a new closed-end fund which is currently being prepared by Deutsche Immobilien Invest. The vehicle, with a life term of 10 years, will have a size of some EUR 68 mln, over EUR 35 mln of which in equity. It aims to distribute an annual payout of 6%, increasing to 7% at a later stage.