Singapore’s sovereign wealth fund GIC has acquired a 25% stake in CitizenM, a €2bn Netherlands-based hotel chain.

CitizenM’s existing shareholders APG is also committing fresh capital to help the hotel developer’s growth program. The €463bn Dutch asset manager APG has invested in CitizenM since it started in 2008.

APG said in addition, GIC and CitizenM founder Rattan Chadha (through KRC Capital) have also committed further equity to accelerate the growth of the company.

In total, CitizenM will have €750m of additional equity available to invest, APG said.

Robert-Jan Foortse, head of European property investments of APG Asset Management, said, “Eleven years ago, we supported Rattan Chadha when he created citizenM. Together, we have been on an incredible and rewarding journey ever since.

”With this transaction, we achieve another milestone. We are very pleased to welcome GIC as an investor in CitizenM. We have successfully worked with GIC on many other occasions.”

Lee Kok Sun, the CIO of GIC Real Estate, said: “As a long-term global investor, we believe this is a good addition to our overall portfolio of quality assets, and look forward to partnering with the CitizenM management team to further add value to CitizenM as they expand globally.”

Chadha said: “We are excited to have GIC as our new investor. This move will help strengthen our position as one of the leading affordable luxury brands in the industry.

“With our bold expansion plans for the coming years, we are thrilled to have the financial support of investors who trust our vision and are instrumental in securing our future success.” 

CitizenM offers “affordable luxury for the people” and currently has 15 hotels in operation in cities like Amsterdam Rotterdam, London, Paris, Copenhagen, New York, and Taipei. In addition, the company has 25 hotels under development.