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the World Of Hospitality
AXA Investment Managers
AXA Investment Managers - Real Assets* and
ATP joint venture announce the acquisition
of two Club Quarters hotels for £180 million
(€240 million) in the City of London
AXA Investment Managers - Real Assets (“AXA IM
- Real Assets”), the leading real estate portfolio and
asset manager in Europe(1), 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 (€240 million)(2).
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).
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.
Huw Stephens, Head of UK Transactions, AXA IM 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(3), 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.”
Website: www.axa-im.com
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”.
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.
AXA IM - Real Assets will seek to draw on its
specialist knowledge of the hotels sector and the
London market together with the expertise of leading
operators, building on experience of managing a hotel
portfolio of c.€2 billion, having invested c.€500 million
to date since the beginning of 2015.