Canada Pension Plan Investment Board (CPP Investments) has committed €475m to a European hotels investment venture with Hamilton Pyramid Europe.
The Canadian investor said it has teamed up with London-headquartered hotel operator and co-investment partner Hamilton to create a partnership focused on the European hospitality sector.
The venture, which has initial equity commitments of €500m, will focus on acquiring operating hotels in key gateway cities and select resort destinations in Europe.
The partners have the ability to increase allocations in light of market opportunities and to allow the joint venture to grow to scale at pace, CPP Investments said.
Andrea Orlandi, managing director and head of real estate Europe at CPP Investments, said: “There is significant scope for growth in many markets across Europe, as tourists and local visitors look for superior hospitality experiences.
“Our new partnership with Hamilton provides exposure to this asset class across European markets, leveraging their deep sector knowledge and insight which will contribute to our objective of driving long-term value for the CPP’s contributors and beneficiaries.”
Tobi Weissinger, a partner at Hamilton Pyramid Europe, said: “CPP Investments’ outstanding reputation in the real estate sector and its financial strength make them an ideal launch partner for us.
”Our collective ability to look through short-term market volatility and focus on long-term growth trends, identifying high-quality assets in attractive markets, as well as our balance sheet strength, are key pillars of that strategy.”
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