APG and Aware Super partner for a €500m European aparthotel expansion with City ID

21 September 2020

Dutch pension provider APG and Australian fund Aware Super have entered into an agreement with the founding partners of City ID to expand the City ID aparthotel offering to European capital cities. In 2019 APG acquired a stake in the company. With Aware Super secured as a capital partner alongside APG, City ID will now embark on a growth phase targeting an aparthotel portfolio with a gross asset value in excess of €500m in the next four years.

City ID is one of the leading aparthotel chains in Amsterdam with currently three operational assets comprising over 250 units. Its most recently opened properties, Boat&Co and Twenty Eight, consistently achieve one of the highest customer ratings in the city. The City ID apartment hotels offer design apartments with a wide range of services.

APG acquired a stake in City ID in 2019. Following the agreement with Aware Super (the new name for First State Super), both capital partners hold an equal economic interest in the company. Co-investment of the founding partners together with the significant APG and Aware Super equity commitments will allow City ID to create an aparthotel portfolio with a gross asset value in excess of €500m in the next four years. The company will focus on the major European capital cities and will operate as a fully integrated asset heavy owner-operator.

Alexander Goad, Chief Executive Officer of City ID, said: “We are delighted to partner with APG and Aware Super to develop and grow our company further across Europe. We highly value the good fit with both the APG and Aware Super teams and are much looking forward to jointly continue the City ID journey. We share a common long-term view and passion to create a fantastic and distinctive aparthotel platform focused around the experience of the guest. Coming months, we will further progress our current pipeline and intensify our search for new prime location acquisitions in the capital cities. We thank all who made this significant deal possible including the teams of City ID, APG, Aware Super and the advisors.

Robert-Jan Foortse, Head of European Property Investments at APG commented: “In our view there is a significant market opportunity to roll out a design aparthotel offering across the major European cities. We are delighted to partner with Aware Super who share our long-term strategic view for the sector. The City ID product has shown remarkable resilience during the ongoing Covid situation and together with Aware Super we look forward to supporting the company in its growth phase.”

Alek Misev, Portfolio Manager – Property at Aware Super added: “We are excited to partner with APG and the City ID Team who have established a unique and innovative operational platform with a quality team ready for growth. The aparthotel sector has significant tailwinds over the long term, given evolving consumer preferences with an appetite for quality service, health and safety and converging boundaries between living and working all powered by technological innovation. Together with APG we believe we have the right mix of patient capital and vision to support City ID in scaling up the platform over the long term.”

City ID is a young, fast growing, award-winning and customer centric apartment hotel chain, aiming to optimize the many touch-points that result in an optimal stay. The company developed and operates three assets in Amsterdam: Twenty Eight, ID Aparthotel and the recently opened Boat&Co. Its apartment hotels offer fully equipped design apartment accommodations with hotel services and facilities, well suited for business and leisure travellers looking for longer or shorter stays. The City ID product allows its customers to live like a local while enjoying the amenities of a hotel. City ID intends to grow as fully integrated owner-operator and can acquire development sites and turnkey deliveries. Target developments include new-builts, office conversions, mix use schemes and existing hotel conversions. The company is open to form development partnerships/Joint Ventures for individual projects. For more information, please visit https://www.cityidgroup.com/en.

Advisors
CBRE Capital advisors supported the process with EY, Stibbe and Jelle Krings Corporate Advice acting as advisor to City ID and its shareholders.

APG was advised by Proskauer Rose.

Aware Super was advised by Deloitte, Hogan Lovells and NautaDutilh.