AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), the leading real estate portfolio and asset manager in Europe, announces that it has received planning permission to redevelop a mixed-use office-led asset in central Paris into a luxury five star hotel. AXA IM - Real Assets has owned and managed the asset, on behalf of one of its clients, since 1995 and, having identified its potential for an alternate use, will be undertaking the redevelopment project leveraging both its development and alternatives expertise.
The redeveloped luxury hotel will be operated in conjunction with InterContinental Hotel Group under Kimpton, its lifestyle and luxury boutique brand.
The asset is prominently located in the Opéra area of Paris’ 2nd arrondissement, straddling both Boulevard des Capucines and Rue Daunou. Opéra is one of the most dynamic districts of Paris, home to many places of tourism interest and also hosts a number of offices, making it the ideal location for a hotel, benefitting from both business and leisure demand.
Designed by Bourstin architects, the completed 12,000m² upper five star hotel will be one of the finest in central Paris, offering 149 bedrooms, including 27 suites, conference and events space, in addition to a range of luxurious amenities such as a spa and landscaped courtyard, with a striking rooftop terrace providing panoramic views across Paris’ historical Opéra area. Leveraging the asset’s prime location which draws high footfall, 800m² of retail space will be available at street level and a fine dining restaurant will also be contained within the hotel. Construction is due to start in 2017 under the management of Vinci Immobilier, with the hotel expected to be completed by 2020.
The hotel will add to AXA IM - Real Assets’ over €2bn portfolio of 87 hotels across eight countries that it manages on behalf of clients. AXA IM - Real Assets’ hotels are predominantly managed by leading hotel operators through all variations of management contracts, from traditional leases to franchise agreements. This is in line with its investment strategy of undertaking a full range of partnership options with best in class operating companies for its wider €3bn alternatives platform, including the hotels estate.
This transaction also builds on AXA IM - Real Assets’ reputation as one of Europe’s most active developers, with an established track record of managing and executing over 250 development projects across eight European countries for a total of €13.2bn since 2000, while it also has €10.5bn worth of projects currently under development.
Nathalie Charles, Regional Head of Asset Management & Transactions, Southern Europe, and Pan-European Development Leader at AXA IM - Real Assets, commented: “The successful receipt of planning permission is an important milestone in the formation of this future hotel, which we believe will be one of the finest and most desirable upscale hotels in the Parisian market, once completed. Drawing on our experience from the transformation of the InterContinental Hotel in Marseille and the Radisson Blu Hotel in Nantes, this significant project provides strong evidence of our willingness to undertake large scale redevelopment projects.”
Karl J. Badstuber, Senior Hotel Specialist at AXA IM - Real Assets, added: “With the objective of constantly maximizing the value and potential of all of our investments for the benefit of clients, we identified this prime asset in AXA IM - Real Assets’ portfolio as an excellent hotel conversion opportunity. This investment also illustrates our ability to secure the best brand operators for us to partner with in order to enhance these strong income-producing assets.”