AXA Investment Managers - Real Assets has announced the completion, on behalf of a 50/50 joint venture between ATP and AXA Insurance Companies, of the acquisition of two City of London hotels from Chelsfield Partners LLP for £180m (€240m).
The two freehold assets, located at St Paul’s (EC4) and Gracechurch Street (EC3), encompass a total of 468 bedrooms and seven retail/restaurant units, with a total area of 204,000ft² (18,952m²).
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 €6bn UK portfolio, 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.”
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”.
AXA IM - Real Assets seeks to draw on its knowledge of the hotel sector and the London market together with the expertise of leading operators, building on the experience of managing a hotel portfolio of approximately €2bn, having invested approximately €500m to date since the start of 2015.
