A CapMan Real Estate hotel investment fund is acquiring Midstar Fastigheter, a Nordic hotel owner with 28 properties across Sweden, Denmark and Norway.
The CapMan Hotels II (CMH II) fund has agreed to buy the portfolio, comprising 4,709 rooms, for an unspecified sum.
According to media reports, the hotel portfolio was valued at SEK10.5bn (€940.1m) at the end of last year.
Alecta, Sweden’s largest pension fund, holds a 49.7% stake in Midstar, according to its latest annual report. The other reported shareholders include Kåpan Pensions with a 28.9% stake, Riksbankens Jubileumsfond with 10.4%, Försäkringsbolaget PRI Pensionsgaranti with 10.4%, and Midstar AB with a 0.6% interest.
CBRE, which advised CapMan Real Estate on the acquisition of the Midstar hotel portfolio, said that the deal represents the largest recorded hotel real estate transaction in the Nordics. JLL advised the selling consortium.
CMH II intends to expand the portfolio to 4,887 rooms by 2027 through value-enhancing projects.
Mika Matikainen, managing partner of CapMan Real Estate, said: “We are excited about this transaction and its positive impact on our hotel fund. The acquisition of this high-quality portfolio outside of Finland strengthens our position as a key player in the Nordic hotel investment market, and it aligns perfectly with our investment strategy.
“We see significant potential in this platform and are confident in its ability to deliver strong returns, driven by the continued growth of the Nordic hotel market.”
Thomas Laakso, a partner at CapMan Real Estate, said: “CapMan Hotels II is a well-performing five-star rated fund in the GRESB sustainability benchmarking, and we are equally committed to enhance the sustainability performance of the Midstar Fastigheter portfolio.
“In addition to sustainability improvement efforts, we will be working closely with the hotel operators to identify and implement other value-enhancing initiatives.”
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