Invesco Real Estate has entered the Portuguese hotel market with the acquisition of three hotels in Lisbon for €313 million.
LONDON, 27th June 2019--
• Invesco Real Estate acquires its first hotels in Lisbon in a €313m deal with Minor International and NH Hotels, marking the largest ever hotel real estate transaction in Portugal.
• The deals provide Invesco Real Estate’s hotel strategy with access to excellent micro locations in an attractive market, diversifying its growing portfolio.
• Continues Invesco Real Estate’s strong partnership with NH Hotels and its leading brands and best in class operational capabilities.
Invesco Real Estate (Invesco), the global real estate investment manager, has secured three hotels in Lisbon, Portugal for a total investment of €313m on behalf of two client pooled and separate account mandates. The acquisition for these two mandates marks the largest ever hotel real estate transaction in Portugal and is testament to Invesco’s ability to deliver on its institutional investors’ objectives while investing in best-in-class assets in attractive markets in Europe. The deals add an additional country to Invesco Real Estate’s growing pan-European hotel portfolio, bringing its current portfolio to 25 investments in 8 countries with over €1.5bn of AUM.
The hotels - Tivoli Avenida Liberdade Lisboa, Tivoli Oriente Lisboa and AVANI Avenida Liberdade Lisbon - have been acquired from Minor International (MINT) and will be operated by MINT’s subsidiary company NH Hotels (NHH), with whom Invesco has a long-standing relationship. The hotels are located in excellent micro locations within Lisbon on the Avenida Liberdade and in the growing Parques des Nacoes business district. The Lisbon market has experienced strong demand growth, particularly from international travellers, which is expected to continue with improving infrastructure and the upcoming development of a new airport.
David Kellett, Senior Director Hotel Transactions at Invesco Real Estate commented: “Lisbon is a market with strong growth fundamentals, which we have been monitoring for some time. Our patience has been rewarded with access to this attractive investment opportunity of three high profile and high-quality hotels in strong micro locations.”
David continues: “This is our first transaction with Minor International and builds on our long-term relationship with NH Hotels. The opportunity to work in partnership with a strong European brand and experienced operator who we have had an excellent relationship with in the past is very exciting as we deliver a strong product to a growing marketplace. We look forward to a collaborative and increased partnership with both Minor and NH over the coming years. The hybrid lease agreement we have put in place means we will deliver a sustainable fixed rent with the ability to benefit from performance upside through a variable rent, providing attractive returns for our underlying investors.”
In this transaction, Invesco Real Estate was advised by TaylorWessing, Cuatrecasas, PwC, JLL, AvisonYoung, B.Prime and CBRE.
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