Danish pension fund AP Pension and CapMan Real Estate have formed a 50/50 joint venture to acquire the four-star Hotel Crowne Plaza Copenhagen in Denmark from Niam for an undisclosed sum.
The acquisition of the 29,089sqm, 366-room asset in Copenhagen’s Ørestad district marks one of the first investments for the CapMan Nordic Real Estate IV fund, which held its initial close in June.
Niam, which acquired the property in 2019, said it completed operational enhancements prior to the sale, including renegotiating the lease with operator Bellagroup and technically separating the hotel and office components.
CapMan Real Estate said it plans to carry out refurbishments alongside operator Bellagroup to strengthen the hotel’s market position and competitiveness.
Mika Matikainen, managing partner, CapMan, said: “Hotel Crowne Plaza Copenhagen is a high-quality asset that fits perfectly with the investment strategy of CapMan Nordic Real Estate IV. We continue to see attractive opportunities in selected segments of the Nordic real estate market where strong fundamentals, active asset management and long-term trends support value creation.
“Copenhagen’s hotel market offers a compelling combination of resilient demand, international connectivity and limited new supply, making it an attractive market for long-term investment.”
Rikard Henriksson, head of real estate at Niam, said: “The hotel market has recovered strongly following the pandemic, supported by increasing travel and continued demand for high-quality hotel assets in attractive locations.
“This transaction reflects the renewed strength of the market and the continued appetite from institutional investors for well-positioned assets with strong long-term fundamentals.”
Erik Rydström, fund manager at Niam, said: “During our ownership, we have worked to strengthen the asset and its operational foundation. This has included renegotiating the lease agreement and technically separating the hotel and office components of the property.
“While we remain confident in the asset’s long-term prospects, we believe the current market environment provides an attractive opportunity to realise value for our investors.”
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