ATP Real Estate and AXA IM - Real Assets invests in large hotel in Amsterdam
The joint owners will each hold a 50 percent share.
The future 4-star hotel with the name ’Nhow Amsterdam RAI Hotel” is designed by the Dutch architecture firm OMA (founded by Rem Kolhaas), and will comprise 650 rooms, conference facilities, a wellness centre, sky bar & restaurant, a TV studio, and an underground parking garage. Construction started in September of 2016 and completion is projected for the second half of 2019. The hotel will be the largest hotel in the Benelux region, and the operator, Nhow, is part of one of Europe’s largest hotel chains NH Hotel Group.
CEO at ATP Real Estate, Michael Nielsen, says:
”We are pleased with the investment as it aligns with our strategy to diversify our investments in the hotel sector. With a professional hotel operator and based on a long-term and indexed lease, the investment is financially sustainable and will deliver stable returns for many years to benefit the ATP members.
”Nhow Amsterdam RAI Hotel” will benefit from its first class location right in the centre of Amsterdam’s main business district adjacent to the World Trade Centre and the large conference and exhibition site, RAI Expo Centre. It will be a prominent place for both the business and leisure traveller, and with just nine minutes by train from Amsterdam Schiphol Airport and 15 minutes south of the city centre, the accessibility is uniquely high.
The expansion of the cooperation to include the hotel development project in Amsterdam is partly due to AXA IM –- Real Assets’ extensive experience with this type of real assets.
Nathalie Charles, Regional Head of Asset Management & Transactions for Southern Europe, at AXA IM - Real Assets, commented:
“This acquisition demonstrates AXA IM - Real Assets’ capabilities to underwrite significant development projects across a diverse range of sectors, with the goal of generating attractive returns on behalf of our clients.”
ATP Real Estate’s collaboration with AXA IM - Real Assets started in 2014 with the acquisition of the office building complex North Galaxy in Brussels – an investment worth DKK 3.5bn which has already benefitted the members of ATP with a good return. In January 2016 the acquisition of two London hotels took place – an investment amounting to DKK 1.8 bn with ATP’s share comprising about half of the acquisition sum, DKK 900 bn.
The acquisition in Amsterdam continues ATP’s strategy for direct ownership of large international properties with a low risk profile. The total value of ATP Real Estate’s real estate portfolio is approx. DKK 36bn.
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