ATP invests in two hotels in the City of London
AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), the leading real estate portfolio and asset manager in Europe, announces that it has completed, on behalf of a 50/50 joint venture between ATP, Denmark’s largest Pension Fund, and AXA Insurance Companies, the acquisition of two City of London hotels from Chelsfield Partners LLP for £180 million (€255 million).
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 sqft (18,952 sqm). Both hotels are operated by Club Quarters, a major US operator with a specific focus on business travellers.
The two properties benefit from ongoing development and improvements in the surrounding area together with the City of London's position as a leading global financial centre, creating strong occupational and investment demand.
Michael Nielsen, CEO of ATP Real Estate, commented: “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”.
Huw Stephens, Head of UK Transactions, Real Assets, commented: “This transaction represents an attractive investment, adding two high-quality, well-located freehold central London assets to our over €6 billion UK portfolio, which benefit from having income secured on long term contracts in addition to significant underlying alternative use value through retail/restaurant leases. Together with our investors, we are looking forward to a continuing partnership with Club Quarters as the assets enter a new phase.”
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.