Danish pension fund ATP and AXA insurance companies have bought a project in Amsterdam to develop the largest hotel in the Benelux region.
Through a 50-50 joint venture, the €108bn Danish statutory pension fund and AXA have acquired the development from real estate developer COD by means of a forward purchase.
The hotel, which is being developed by COD in conjunction with sustainability specialist Being Development, will have the largest number of rooms in the Benelux region when it is finished in two years’ time.
The transaction follows a similar joint venture last year, when ATP and AXA co-invested in two London hotels.
AXA Investment Managers–Real Assets carried out the transaction on both occassions. The investment manager now manages 80 hotel assets worth €2.6bn across eight countries on behalf of different clients.
The deal also comes soon after ATP and PensionDanmark bought the Copenhagen Marriott Hotel for a combined DKK1bn.
Michael Nielsen, chief executive of ATP Real Estate, said: “We are happy to further diversify our investments in the hotel sector and add to the sustainable, long-term secure income for the benefit of ATP’s members.”
Nathalie Charles, regional head of asset management adn transactions for Southern Europe at AXA IM–RA, said: “Amsterdam is one of Europe’s fastest growing and most dynamic cities and we are excited about growing our hotel footprint, following soon after the refurbishment inauguration of the NH Collection Grand Hotel Krasnapolsky in April 2016.”
Building work on the hotel, which will operate under the name Nhow Amsterdam RAI Hotel, started last September and is expected to be completed in the second half of 2019.
It will be operated by Nhow, part of the NH Hotel Group, which has signed a pre-let on a long-term lease, and will be located in Amsterdam’s main business district of Zuidas and the World Trade Centre.
The hotel has been designed by architecture firm OMA, which was founded by Rem Koolhaas, and will have 650 rooms and a 4-star rating.
AXA IM–RA said the hotel is aiming for BREEAM Excellent certification, and will have conference facilities, a wellness centre, skybar and restaurant, a TV studio and parking garage.