The M&G European Secured Property Income Fund has marked its three-year anniversary with the acquisition of a central Amsterdam hotel for €42.8m. The 254-room hotel in Sloterdijk is operating under a franchise agreement as a Holiday Inn Express. Invesco Real Estate has sold the hotel asset on behalf of one of its European separate account mandates. This is the 11th acquisition and the first investment in the Netherlands for the M&G European Secured Property Income Fund.
The hotel is located adjacent to the Amsterdam Sloterdijk transport hub, with direct connections to Schiphol Airport and the city centre in under 10 minutes. The area has experienced an upgrade in recent years with newly built residential, student housing and hotels. Corporate and leisure demand in Amsterdam has driven annual overnight stays to increase from 10.7 million in 2012 to approximately 15.6 million in 2017. The average occupancy of rooms has increased from 74% to 84% over the same timeframe and the city is forecast to be second only to London for occupancy levels in 2018.
Antonin Prade, Director Investment, M&G Real Estate, said: “Amsterdam is a top tourism destination and the Sloterdijk area has seen increasing investment and redevelopment in recent years. This hotel is ideally situated to benefit from this trend and the long lease provides our clients with certainty on income for the next 20 years.”
Ben Jones, manager of the M&G European Secured Property Income Fund, added: “This is the fund’s third investment in the hotel sector and first investment in the Netherlands. The capital deployed over the past three years provides our pension fund and insurance clients, mainly from Continental Europe, with income over the long term from a diversified portfolio investing across all sectors and a wide range of countries.”