Invesco Real Estate has acquired two hotel development schemes in Florence and Milan for a total of €160 mln.
The forward purchase agreements include the new 25hours hotel in Florence, at Piazza San Paolino, sold by Germany's Art-Invest Real Estate. Comprising 172 hotel rooms and a 1,000 m2 garden, the project is expected to be completed in 2020.
The second deal is for the new NH Hotel at CityLife in Milan, acquired from Italian developer Igefi. The development is set to open in Q4 2021 and will offer 185 rooms with conference facilities and a swimming pool in the rooftop.
'Italy is a key hotel market, ranking as the third most visited destination in Europe for international tourism and one that we have been looking to access as we grow our diversified hotel portfolio,' said Chris Brassington, senior director fund management at Invesco.
'The addition of these assets provides access to a new-build lifestyle hotel in the heart of Florence and the growing Citylife district of Milan, where corporate and convention demands are set to increase. These assets will add value creation opportunities and stable income for our investors’ growing portfolio of investments,' added Brassington.
Invesco said that both hotels will be operated under long-term lease agreements and that the deals add an additional country, operator and hotel style to Invesco Real Estate’s growing pan-European hotel portfolio, which currently has 25 investments with over €1.5bn of assets under management.
The Florence development is financed by Unicredit. Art-Invest Real Estate was advised on the transaction by Eastdil Secured, McDermott Will & Emery and Molinari Associati.
Invesco Real Estate was advised on both deals by Hogan Lovells, PWC and Ernst & Young.
CBRE advised Igefi.
