Archer Hotel Capital, a European hotel investment vehicle jointly owned by Dutch pension fund APG and Singapore’s SWF GIC, has announced that it has completed the acquisition of the 200-room Madrid Edition hotel asset ahead of its opening and scheduled completion date planned for the end of the year.
Archer is said to have paid €205 mln for the asset, a discount of around 7% to the initial asking price of €220 mln, according to Spanish press reports.
Vendor KKH Property Investors will continue to oversee the development of the hotel under a development services agreement.
‘We are pleased to complete the transaction for the Madrid Eedition on an accelerated basis and are now eagerly looking forward to the hotel’s opening. This revised transaction is a creative solution amidst the ongoing pandemic and represents a win-win for both buyer and seller, said Dominic Seyrling, director of Investments at Archer Hotel Capital.
KKH bought the site to develop the hotel asset in 2016. In February last year, just before the pandemic erupted, Archer agreed to buy the luxury hotel asset which is located a few metres from Madrid’s famous Puerta del Sol and Plaza Mayor.
Archer was established in December 2018 and owns 11 European hotels with a gross asset value of circa €2 bn and revenues of nearly €400 mln.
