Axa Investment Managers - Real Assets has forward-committed to acquiring a hotel complex within the 250 City Road development scheme in central London – a day after announcing the purchase of a prime building in Kiel, Germany (IAR, 2 November, Axa IM buys prime building in Kiel).
The Axa arm said it is acting on behalf of a large US pension fund. It is buying the shell and core from the Berkeley Group, and undertaking the fit-out of the new hotel for a total investment of about £90m (€126m/$139m).
Construction of the hotel has already started and the shell and core delivery is planned for early 2018. The insurer's investment management division said, "This transaction further strengthens Axa IM - Real Assets' €2.7bn alternatives platform." The firm's current hotel portfolio is worth €1.5bn alone.
The City Road hotel – with an exterior designed by British architects Foster + Partners -- will be fitted out and operated in conjunction with Spain's NH Hotel Group. It will comprise 190 bedrooms, a restaurant, bar, gym and meeting rooms.
In addition to the four-star hotel, the 1.2m sq ft (11,000 sq m) mixed-use scheme will incorporate offices, retail space and 933 residential apartments. The scheme is adjacent to Old Street roundabout, also known as "Silicon roundabout."
Huw Stephens, head of UK transactions at Axa IM - Real Assets, said, "250 City Road is another excellent addition to our steadily increasing Central London portfolio."
Last month, Axa IM – Real Assets completed the acquisition of 182-184 High Holborn, London, on behalf of clients for about £29m (€39.4m/$44.7m) (IAR, 23 October, Axa IM Real Assets completes £29m London purchase), and in the first nine months of 2105 it completed property transactions in German totalling €756m ($857m) (IAR, 9 October, Axa arm capitalises on buoyant German property market).
People:Huw Stephens