A joint venture of AXA Investment Managers - Real Assets and Danish pension fund ATP has acquired two Club Quarters hotels in the City of London for £180 mln (€240 mln).
A joint venture of AXA Investment Managers - Real Assets and Danish pension fund ATP has acquired two Club Quarters hotels in the City of London for £180 mln (€240 mln).
The two freehold assets, situated in prominent City of London locations at St Paul’s (EC4) and Gracechurch Street (EC3), provide a total of 468 bedrooms and 7 retail/restaurant units between them, with a total area of 204,000 sq ft (18,952 m2). The vendor was from Chelsfield Partners.
'This transaction represents an attractive investment, adding two high-quality, well-located freehold central London assets to our over €6 bn UK portfolio, which benefit from having income secured on long term contracts in addition to significant underlying alternative use value through retail/restaurant leases,' said Huw Stephens, head of UK Transactions, AXA IM - Real Assets. 'Together with our investors, we are looking forward to a continuing partnership with Club Quarters as the assets enter a new phase.'
Michael Nielsen, CEO of ATP Real Estate, added: 'We are happy to see our international real estate strategy diversifying also to the hospitality sector. The long term secure income profile fits the investment needs for ATP very well.'
The transaction, which involves the acquisition of all the shares in a company owning the properties, significantly adds and expands the investment mandate granted by the investors.
