B-aparthotels Sells Four Properties to Belgian REIT

Date: June 2018

Location: Brussels, Belgium

Name: B-aparthotels Ambiorix, B-aparthotels Grand Place, B-aparthotels Regent and B-aparthotels Montgomery.

No. of Keys: 185

Seller: B-aparthotels Group has sold one its entities, BE REAL ESTATE S.A., which owns the freehold interests in four aparthotel buildings in Brussels.

B aparthotels Group, who currently operates six aparthotels in Belgium (Brussels, Antwerp) and in the Netherlands (The Hague), and is expected to open a flagship in Amsterdam at the Ven Amsterdam complex towards the end of 2018.

The transaction is expected to be closed before the year end. The investment value of the portfolio has been set at €36 million and the fixed rent corresponds to a 5.1 per cent yield in a long-term lease. The acquisition will be financed through bank loans.

Buyer: Home Invest Belgium (HIB), a major REIT in the residential sector in Belgium. The transaction is structured through a sale and lease-back deal and the properties will continue to operate under the B-aparthotels brand name.

Romain Avril, CEO of B-aparthotels, said: “The sale of our real estate interests of our aparthotels in Brussels through the disposal of our company Be Real Estate S.A. constitutes an important milestone for the future of the group. It allows us to focus on our core business of apart-hotel operator and provides us the financial strength to boost the international expansion of the group, which remains the key objective for the future.

The apart-hotel sector is untapped in Europe and we have identified tremendous development opportunities whereby the B-aparthotels brand plays a key role.

We have ambitious growth plans and our target is to reach 30 apart-hotels in operation and under development in Europe by 2022. This transaction is the backbone for the extension of our partnership with Home Invest Belgium in the Benelux area.”

Nicolas Vincent, chief investment officer (CIO) of Home Invest Belgium, said: “We invest in the residential sector only.

However, our strategy is to look at the residential sector in the broad sense of the term. I think of traditional apartments, furnished apartments, student housing, co- housing, or any other form of residential including aparthotels.

Our strategy is clear but it must be seen without wearing blinkers. Entering into the aparthotel sector allows us to acquire high-quality real estate positions. By definition, aparthotel locations are often excellent and very central.”

Price: €36m

Price per Key: €264,706

THPT Comment: The USA really started the sector in the 1960s and 1970s with the extended stay product from Marriott and Hilton, the UK and France followed through in the 1980s and 1990s, closely followed closely by Asia and Australasia…now good to see the rest of Europe maturing in 2000 and 2010s

First Seen: Serviced Apartment News