Dutch pension fund APG is joining forces with Australia’s Aware Super to finance a €500 mln European aparthotel expansion by City ID, an Amsterdam-based apartment hotel chain.
APG, which last year acquired a stake in City ID with plans to expand the business following the success of its earlier ventures CitizenM and the Student Hotel, has now brought Aware Super on board with the aim to expand the City ID business to the major European cities.
The two capital partners now hold the same stake in City ID, a local aparthotel chains focused on Amsterdam with currently three operational assets comprising over 250 units. The firm’s founding partners are also expected to invest in the growth programme, which envisages the acquisition of an aparthotel portfolio with a gross asset value in excess of €500 mln over the next four years.
The company will focus on the major European capital cities and will operate as a fully integrated asset heavy owner-operator.
‘We are delighted to partner with APG and Aware Super to develop and grow our company further across Europe,’ said Alexander Goad, Chief Executive Officer of City ID. ‘We highly value the good fit with both the APG and Aware Super teams and are very much looking forward to jointly continue the City ID journey. We share a common long-term view and passion to create a fantastic and distinctive aparthotel platform focused around the experience of the guest. In the coming months, we will further progress our current pipeline and intensify our search for new prime location acquisitions in the capital cities.’
Robert-Jan Foortse, head of European Property Investments at APG commented: ‘In our view there is a significant market opportunity to roll out a design aparthotel offering across the major European cities. We are delighted to partner with Aware Super who share our long-term strategic view for the sector. The City ID product has shown remarkable resilience during the ongoing Covid-19 situation and together with Aware Super we look forward to supporting the company in its growth phase.’
Alek Misev, Portfolio manager – Property at Aware Super commented: ’The aparthotel sector has significant tailwinds over the long term, given evolving consumer preferences with an appetite for quality service, health and safety and converging boundaries between living and working all powered by technological innovation. Together with APG we believe we have the right mix of patient capital and vision to support City ID in scaling up the platform over the long term.’
CBRE Capital advisors supported the process with EY, Stibbe and Jelle Krings Corporate Advice acting as advisor to City ID and its shareholders.
APG was advised by Proskauer Rose and NautaDutilh.
Aware Super was advised by Deloitte, Hogan Lovells and NautaDutilh.
