ATP Real Estate and PensionDanmark acquire the Copenhagen Marriott Hotel
ATP Real Estate and PensionDanmark have acquired one of Copenhagen’s most prominent hotel properties, the Copenhagen Marriott Hotel. The two investors each acquired 50 percent of the property for a total purchase price of approx. € 135m. The hotel is fully leased to BC Hospitality Group A/S.
Located on the waterfront at ‘Kalvebod Brygge’ the property comprises 406 rooms and 24,000 square metres. Marriott has operated the hotel since the building was constructed in 2001.
CEO at ATP Real Estate, Michael Nielsen, says
“We are very pleased with the investment which is in line with our focus on sizeable direct investments in properties located in prime locations, with long-term leases, and generating stable income to benefit the ATP members. Over the years, Marriott has built a strong market position for the hotel in Copenhagen. With the acquisition of two London hotels earlier in 2016, and the addition of the Copenhagen Marriott today, we have made significant additions to this sector in our real estate portfolio.
CEO at PensionDanmark, Torben Möger Pedersen, says
“At PensionDanmark we invested in our first two hotel properties in 2016. We are very pleased to be able to add the Copenhagen Marriott Hotel as our third hotel investment. It is a modern hotel leased to a stable tenant in an exceptionally attractive location for tourists and conference attendees alike. We are delighted that the investment will generate good and stable returns for our members over the next many years.”
For both pension funds the investment contributes to spreading their real estate investments among several sectors with different risk profiles. ATP Real Estate and PensionDanmark are already working together on several real estate investments which include the UN City located at the Marble Pier in Copenhagen and the ‘Magasin’ department store properties in Copenhagen, Lyngby, Odense, and Århus.
Solstra Investments A/S is the seller and controls the operator B C Hospitality Group, who runs the hotel under a franchise agreement with Marriott. With more than 2,000 employees, B C Hospitality Group also owns and operates AC Hotel Bella Sky, Bella Center Copenhagen, Crowne Plaza Copenhagen Towers and operates Forum in Frederiksberg.
ATP Real Estate ATP Real Estate’s exposure to domestic and international real estate investments comprises approx. € 4.8bn at the end of 2016.
PensionDanmark PensionDanmark targets an allocation to Danish real estate investments of approx. 10 percent of the total investment portfolio. At the end of 2016 PensionDanmark’s real estate investments amount to DKK 1.8bn The real estate portfolio is expected to grow to more than DKK 2.7bn in 2017.