Opportunistic investors KKR and Baupost confirmed the acquisition of a portfolio of 33 Marriott International hotels across the UK from ADIA, while listed property group Covivio completed the purchase of 43 hotel properties in France, Belgium and Germany, in a €800 mln swap deal with AccorInvest.

The KKR/Baupost transaction with ADIA is believed to be worth £900 mln (€1 bn).

‘Our purchase of this impressive portfolio reflects our conviction in the UK and the opportunity we see to invest behind strong fundamentals and long-term growth in the European hospitality sector,’ said Mai-Lan de Marcilly, managing director and head of transactions France and hotels at KKR, which is making the investment primarily through its value-add and opportunistic European real estate strategy.

‘This is our second investment with Marriott International in Europe and expands our global relationship as well as making us the largest owner of premium segment Marriott International hotels in EMEA.’

‘This venture highlights our continued opportunistic approach to investing in high-quality assets,’ added Nick Azrack, partner at The Baupost Group.

Covivio, which took full ownerhip of 43 hotels in exchange for 16 other hotel properties in the same regions, said the deal will enable it to strengthen its hotel presence in areas with strong tourist appeal and significant potential for value creation through repositioning and management optimisation.

It plans to invest around €100 mln to renovate the hotels which include the Ibis Montmartre, the Mercure hotels in Boulogne, Nice and Lyon, and the Novotel Sèvres.

In the assets on the market section, two new hotel properties were put up for sale. In London, advisor Savills has been mandated to divest the 153-bedroom Ruby Stella Hotel for a price of €60 mln while in Brussels the Aloft Brussels Schuman hotel is going for sale for some €40 mln.

Other interesting transactions this week include one of France’s largest refinancing facilities of the year. Irame Capital Partner, an OPCI investment vehicle managed by Amundi Asset Management, has secured a senior loan of €225 mln against a portfolio of five properties including 123 avenue des Champs-Élysées, an Yves Saint Laurent boutique on the Champs-Élysées.

The funds section highlights investors’ beds-and-sheds appetite with investor Mark launching its second last-mile logistics fund, Crossbay II, having secured €660 mln in total fund commitments, representing a 20% increase in fund size compared to the predecessor vehicle.

In Spain, investment firm A&G established its second living fund with a target of €250 mln and a focus on traditional living assets, student residences, flex living, coliving and senior living.

 

Recently completed deals       
Asset Asset type Location Buyer Vendor Size Price (mln) Key facts
33 Marriott International Hotels hotel UK KKR and Baupost ADIA 6,500 rooms £900 (€1086) The assets are located in London and in prime regional cities including Edinburgh, Glasgow, Leeds and Liverpool.
12 student housing assets living Spain Azora EQT Exeter 1,500 beds €450 The sale involved assets located in nine different Spanish cities and was conducted by the EQT Real Estate II fund.
43 hotels hotel France, Belgium, Germany Covivio AccorInvest 43 hotels €393 The transaction has taken the form of a property swap with Covivio selling 16 assets to AccorInvest.
Bollène logistics park, the Oseraye logistics park and Ecoparc Côtière logistics France WDP and CBRE IM Altarea 360,000 m2 €390 WDP bought the Bollène and the Oseraye logistics parks while CBRE IM acquired Ecoparc Côtière.
Moncler global HQ office Milan Valesco Covivio 38,000 m2 €200 The deal reflects a net initial yield of 5.5% on stabilised rental income.
Méndez Alvaro rental residential asset living Spain Savills IM and Greystar Acciona 28,000 m2 €150 The 455-home Build to Rent development will operate under Greystar’s new Nera Living brand.
740-apartment residential portfolio living Sweden Klarabo Rikshem Group 57,000 m2 SEK 850 (€74) The portfolio consists of seven properties - Batteriet 1, Batteriet 3, Batteriet 8, Batteriet 9, Brigaden 1, Värnet 2, and Värnet 3 - in Fredriksdal in the municipality of Helsingborg.
Bradstowe House living London NA Interpath Advisory 12,412 m2 £58 (€70) The property has an average occupancy of 2.9 years, and over 25% of residents have been in situ for over four years.
Portfolio of 6 assets logistics Denmark Blackstone Dansk Ejendomsfond 90,000 m2 DK 500 (€67) The ‘Dansk Ejendomsfond I’ consortium includes Velliv, Pædagogernes Pension (PBU) and AP Pension.
Femina-Palast mixed Berlin Vivion Signa 15,000 m2 €65 The asset will be converted into a five-star hotel.
50% stake in 50 Baker St office London Derwent London Lazari Investments 240,000 ft2 £44 (€53) The deal reflects a 4.2% net initial yield at the current passing income of £2 mln per annum.
newly developed logistics facility living Borås, Sweden Storebrand Asset Management Kid and Fabritius 57,000 m2 SEK 600 (€52) The entire property is leased to Hemtex/Kid.
Bourdon House office London UK family office AIK 20,000 ft2 £29 (€35) Aik bought the property for £16.5 million in 2009.
Oas complex office Malmö, Sweden Skanska Investment Properties Skanska Commercial Property Development Nordic 7,500 m2 SEK 380 (€33) Developed and constructed by Skanska, the office dubbed Oas was completed in 2024 and is 90% leased.
24 Pilsudskiego Avenue office Lódz, Poland Summus Capital Echo Investment 15,000 m2 €32.5 The asset is fully let to tenants including Alorica Inc., Bank Pekao S.A. Group, and the Enel-Med medical centre.
Sofitel Grand Sopot hotel Sopot, Poland Sinfam Investments AccorInvest 126 rooms €30 The hotel dates back to 1927 and was recently refurbished.

 

Assets on the market       
Asset Asset type Location Vendor Size Price (mln) Broker Key facts
Ruby Stella Hotel hotel London RE Capital 153 bedrooms £50 (€60) Savills The hotel opened in November 2024, and it includesa ground-floor communal space, including a restaurant, bar, and courtyard terrace.
Nursing home portfolio living Italy Geras Fund NA €60 NA The portfolio for sale comprises properties in Milan, Genoa and Trecate.
Aloft Brussels Schuman hotel Brussels Extendam, Schroders 150 rooms €40 NA The joint venture acquired the four-star asset in 2019.

 

Recently completed loans      
Lender(s) Borrower(s) Asset(s) Loan Size (mln) Key facts  
Natixis, US insurer Irame Capital Partner Five asset portfolio €225 The portfolio includes 123 avenue des Champs-Élysées, an Yves Saint Laurent boutique.
BNP Paribas, UK insurer Frey Matarnia Park Handlowy shopping center in Gdansk, Poland €150 A €100 mln, 10-year fixed-rate corporate loan was arranged by Natixis and fully subscribed by a UK insurer, while a €50 mln, 7-year mortgage on the Matarnia Park Handlowy shopping center in Gdansk, Poland, was secured through BNP Paribas Bank Polska.
Apollo Valor and QuadRreal Logistics portfolio of seven assets €113.5 The three-year green loan will fund the renovation of the seven-asset, 120,000 m2 portfolio.
EBRD and Swedbank Sirin Development Sirin Park Gariunai logistics park in Vilnius, Lithuania €48 The loan will allow Sirin to build 100,000 m2 of sustainable warehouse space in their Vilnius logistics park.
pbb Deutsche Pfandbriefbank Trei Real Estate Vendo Park retail park portfolio in Poland €38 The facility refinances a 43,000 m2 portfolio consisting of ten assets located in middle and smaller size cities in Poland.
mBank S.A. Real Management S.A. Development portfolio €28 (PLN 120) The funds will finance the development of further logistics and residential assets.

 

Funds on the market   
Firm Fund Strategy Details
Mark Crossbay II Investing in urban logistics assets across Europe Crossbay II has secured €660 mln in total fund commitments, representing a 20% increase in fund size compared to the predecessor vehicle.
      Including debt financing, Crossbay II has a total investment capacity of over €1.5 bn, which will be deployed and managed by Crossbay’s on-the-ground teams across the major markets in Europe.
A&G A&G Living Investments II Focusing on traditional living assets, student residences, flex living, coliving and senior living in Spain. The fund will analyse deals of between €20 mln and €35 mln and will target a volume of €250 mln.

 

 

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