Union Investment is investing €460m to develop a conference hotel, residential block and serviced apartments building complex in Amsterdam.

The Hamburg-based real estate investment manager said it is buying the Y-Towers development project from IES Immobilien and Invester United Benefits.

IES Immobilien will continue to support the project as a partner.

Y-Towers will be added to the portfolio of open-ended real estate fund UniImmo Europa, the manager said.

The 106,000sqm building complex of two towers is being constructed next to the river in the Overhoeks district.

The 33-floor hotel tower, which will become the tallest building in Amsterdam, will accommodate a Maritim-branded conference hotel with 579 rooms.

The neighbouring residential tower will comprise 174 apartments. The lower 10 floors of the tower will contain serviced apartments.

Union Investment said the project, which involves investing €460m, is scheduled for completion by the end of 2022.

Volker Noack, a member of the management team at Union Investment Real Estate, said: “We recently set up a separate value-add team in Union Investment’s real estate segment so that we can expand our range of investment options in ever tighter core markets.

“We have also adopted a develop-to-core approach to take advantage of opportunities currently being offered by robust letting markets.”

Monika Gerdes, head of the value-add team at Union Investment Real Estate, said: “We successfully completed this off-market deal after a brief but very intense acquisition process and are open to further acquisitions with value-add potential.

”Apart from the inner-city waterside location, what makes Y-Towers special is the opportunity it gives us to carry out a hotel development project of this size and create a residential tower that is not subject to rent controls.”

David Hofmann, managing director of IES Immobilien, said: “The sale of our share in the project to Union Investment means that work on realising the Y-Towers development can now proceed.

“We are delighted that the new owner will continue to rely on our expertise, and we are also pleased with the successful transaction and with this proof of IES Immobilien’s ability as a developer – this time at international level.”