M&G acquires Amsterdam hotel for €473m long-lease fund

M&G Real Estate has acquired a hotel in Amsterdam for €42.8m, taking its European long-lease fund to €473m.

The M&G European Secured Property Income Fund has marked its three-year anniversary with purchase of the 254-room hotel in Sloterdijk, which operates under a franchise agreement as a Holiday Inn Express.

Invesco Real Estate sold the hotel on behalf of one of its European separate account mandates.

It is the 11th acquisition – and first in the Netherlands – for the fund that was launched in 2016 to provide pension funds with income returns in line with inflation.

The Fund has grown to €473m and has invested across eight countries in continental Europe.

The hotel is adjacent to the Amsterdam Sloterdijk transport hub, with direct connections to Schiphol Airport and the city centre.

Antonin Prade, director investment at M&G Real Estate, said: “Amsterdam is a top tourism destination and the Sloterdijk area has seen increasing investment and redevelopment in recent years.

“This hotel is ideally situated to benefit from this trend and the long lease provides our clients with certainty on income for the next 20 years.”

Ben Jones, manager of the M&G European Secured Property Income Fund, said: “This is the fund’s third investment in the hotel sector and first investment in the Netherlands.

“The capital deployed over the past three years provides our pension fund and insurance clients, mainly from continental Europe, with income over the long term from a diversified portfolio investing across all sectors and a wide range of countries.”