AXA Investment Managers - Real Assets acquires 2,300-room European hotels portfolio for €531 million
AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), a global leader in real assets investment and the leading(1) real estate portfolio and asset manager in Europe, announces that it has entered into an agreement to acquire, on behalf of clients, a portfolio of 11 well established hotels across Europe, including the Hilton Vienna Danube Waterfront and MGallery Cologne, for a net price of €531 million. The portfolio will be secured through the acquisition of all assets held by the Principal Hotel Immobilien Spezialfonds, managed by Principal Real Estate, a European real estate investment manager and part of the Principal Financial Group.
The 2,339-room portfolio comprises a good mix of business, trade fair and leisure driven properties, with seven located in key cities in Germany and the four other assets located in the leading European cities of Vienna, Turin, Lisbon and The Hague. The hotels are operated by internationally renowned brands including Accor, Hilton and NH on long leases.
AXA IM - Real Assets’ manages a €3 billion(2) portfolio of hotels across the globe on behalf of its clients, which are primarily operated by leading hotel brands through a variety of arrangements from management contracts and franchise agreements to traditional leases. AXA IM - Real Assets remains an active investor into the hotel sector globally as part of its stated objective to focus on alternative asset classes supported by clear structurally-driven growth drivers. In the last seven months alone, acquisitions have included a four hotel portfolio in Australia, a prime Amsterdam city centre hotel and a hotel development in Hiroshima, Japan.
John O’Driscoll, Head of Transactions Europe, at AXA IM - Real Assets, commented: “The hotels within this diversified portfolio are all leased on strong covenants and benefit from the solid local economics as well as tourist and business demand drivers that have underpinned their long-term performance. With various asset management initiatives already identified, including on-going renovation works being undertaken at two of the hotels, we are confident that we can further enhance the long term income generated from the portfolio, on behalf of our clients.”
“This portfolio acquisition is further evidence of our ability to gain access to unique off market opportunities and highlights the value of our strong reputation and benefit of having local and sector expertise to efficiently execute this complex, cross border deal.”
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1 Source: INREV/ANREV Fund Manager Survey – May 2019 – in terms of assets under management
2 Source: AXA IM - Real Assets data, unaudited
AXA Investment Managers - Real Assets
Jocelyne Tamssom, Head of Communications
Tel: +33 1 44 45 97 95
FTI Consulting Inc.
Richard Sunderland, Ellie Sweeney, Richard Gotla, Methuselah Tanyanyiwa, Talia Jessener
Tél: +44 20 3727 1000
About AXA Investment Managers
AXA Investment Managers (AXA IM) is an active, long-term, global, multi-asset investor. We work with clients today to provide the solutions they need to help build a better tomorrow for their investments, while creating a positive change for the world in which we all live. With approximately €757 billion in assets under management as at end of June 2019(1), AXA IM employs over 2,350 employees around the world and operates out of 30 offices across 21 countries. AXA IM is part of the AXA Group, a world leader in financial protection and wealth management.
About AXA Investment Managers - Real Assets
AXA Investment Managers - Real Assets has €85 billion in assets under management, including €64.3 billion in direct property & infrastructure and €16.9 billion in real asset finance as of end of June 2019(2). We offer a 360° approach to investing in real assets, which comprises opportunities in equity or debt, across different geographies and sectors, as well as via private or listed instruments. We are a global leader in real assets investment, the number one property portfolio and asset manager in Europe(3), and one of the largest worldwide. Our teams have been managing funds and mandates for over 30 years and comprise over 600 people in 13 offices that operate in over 20 countries around the world, which provide us with in-depth knowledge of countries, cities and sectors.
1 Source: AXA IM unaudited data
2 Source: AXA IM - Real Assets’ unaudited data
3 Source: INREV/ANREV Fund Manager Survey – May 2019 in terms of assets under management
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