AXA, ATP team up for £180m London hotel investment

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Denmark’s largest pension fund ATP and AXA insurance companies have bought two London hotels for £180m (€240m).

The investment was made on behalf of the 50-50 joint venture by AXA Investment Managers – Real Assets.

It is the first time ATP has invested in the UK hospitality sector, and is the latest example of the Danish investor’s renewed focus on direct investments rather than funds.

Michael Nielsen, CEO of ATP Real Estate, said: “We are happy to see our international real estate strategy diversifying also to the hospitality sector.

“The long-term secure income profile fits the investment needs for ATP very well.”

The two freehold assets, situated in the City of London and covering a total area of 204,000sqft, were sold by Chelsfield Partners.

The transaction involves the acquisition of all share in company that owns the Club Quarters hotels.

Huw Stephens, head of UK transactions at AXA IM – Real Assets, said: “This transaction represents an attractive investment, adding two high-quality, well-located freehold central London assets to our over €6bn UK portfolio, which benefit from having income secured on long-term contracts in addition to significant underlying alternative use value through retail/restaurant leases.”