APG, Australia’s Aware Super Target European Hotels via City ID

Main Photo: The City ID Twenty Eight Aparthotel in Amsterdam

Date: September 2020

Location: Europe

Name: City ID

No. of Keys: TBA

Who: Dutch pension fund manager APG and Australia’s Aware Super have partnered with aparthotel chain City ID to invest over half a billion euros in European assets.

APG, which acquired a stake in City ID in 2019, is now co-investing with Aware Super for an equal take in City ID in a venture that will allow City ID to create an aparthotel portfolio with a gross asset value in excess of €500m in the next four years, the companies said in a joint statement.

City ID currently has three operational assets in Amsterdam and plans to grow as a fully integrated owner-operator through site development and acquisitions.

The deal expands APG’s investment in the European hotel sector which includes the Dutch pension fund manager’s previous investment in a value-add hotel fund managed by Azora, hotel investor citizenM, and via The Portfolio Club joint venture with London Central Portfolio.

Robert-Jan Foortse, head of European property investments at APG said: “In our view there is a significant market opportunity to roll out a design aparthotel offering across the major European cities. We are delighted to partner with Aware Super who share our long-term strategic view for the sector.

“The City ID product has shown remarkable resilience during the ongoing COVID situation and together with Aware Super we look forward to supporting the company in its growth phase.”

Alexander Goad, CEO of City ID, said: “In the coming months, we will further progress our current pipeline and intensify our search for new prime location acquisitions in the capital cities.

“We thank all who made this deal possible including the teams of City ID, APG, Aware Super and the advisors.”

Alek Misev, property portfolio manager at Aware Super, the new name for First State Super, said: “The aparthotel sector has significant tailwinds over the long term, given evolving consumer preferences with an appetite for quality service, health and safety and converging boundaries between living and working all powered by technological innovation.

“Together with APG we believe we have the right mix of patient capital and vision to support City ID in scaling up the platform over the long term.”

THPT Comment: Another new fund aiming at the European space…specifically into aparthotel/serviced apartments, which as a sector have fared better than full-service hotels over this Covid lockdown period.

First Seen: Real Assets IPE

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