PAMERA Real Estate Partners GmbH has acquired the “City South” hotel property at Bamberger Strasse 14 in Dresden. Built in 1997, the property comprises 93 rooms, two conference rooms, a breakfast restaurant, and 52 underground parking spaces on an area of just under 3,100 square meters. The property was taken over by B&B Hotels at the end of 2024; a long-term, indexed lease with options forms the basis for stable cash flow. The seller is the FBK Group from Nuremberg, with Colliers acting as broker through its Dresden office. The parties have agreed not to disclose the purchase price.

“With this acquisition, we are strengthening our commitment to high-growth university and technology locations. The combination of a stable operating structure, an excellent micro-location near the Technical University of Dresden, and a robust ESG profile fits perfectly with our investment strategy,” says Daniele Provenzano, Head of Transactions at PAMERA.

The property is located in the desirable residential area of the green “Bavarian Quarter” and is the closest hotel to the campus of the TU Dresden University of Excellence, which is about a ten-minute walk away. The surrounding area is characterized by universities and renowned research institutes, and public transportation is available right outside the door; the main train station and Prager Straße can be reached in about 15 minutes. As the heart of “Silicon Saxony,” Dresden is benefiting from dynamic economic development.

The property has a strong ESG profile. A photovoltaic system with 176 modules generates around 50 MWh of electricity per year, covering about a quarter of the building’s electricity needs. Two electric charging points are available, and the infrastructure offers potential for expansion to up to ten additional charging points.

In addition to the stable operator setup with B&B Hotels, PAMERA sees further value levers in asset management. A positive preliminary building permit offers, among other things, the possibility of adding another floor to part of the building and creating around 14 additional rooms.

Photo Credit: Colliers