Canada Pension Plan Investment Board (CPP Investments) and Hamilton -Pyramid Europe (Hamilton) have established a new joint venture (JV) focused on the European hospitality sector.
CPP Investments has committed €475m to the joint centure.
With initial equity commitments of €500m the JV will focus on acquiring operating hotels in key gateway cities and select resort destinations in Europe; markets which offer strong leisure driven demand-supply dynamics, attractive liquidity and a sufficiently deep pool of institutional-quality assets.
In particular, the JV will look to capitalise on the growing tourism trends in Europe by targeting assets which have a strong appeal to leisure travelers, and which offer distinct and superior experiences.
The partners have the ability to increase allocations in light of market opportunities and to allow the JV to grow to scale at pace, said CPP Investments in a press release.
“There is significant scope for growth in many markets across Europe, as tourists and local visitors look for superior hospitality experiences,” said Andrea Orlandi, Managing Director and Head of Real Estate Europe at CPP Investments. “Our new partnership with Hamilton provides exposure to this asset class across European markets, leveraging their deep sector knowledge and insight which will contribute to our objective of driving long-term value for the CPP’s contributors and beneficiaries”.
“We are delighted to be announcing our partnership with CPP Investments today”, said Tobi Weissinger, Partner at Hamilton Pyramid Europe. “CPP Investments’ outstanding reputation in the real estate sector and its financial strength make them an ideal launch partner for us. Our collective ability to look through short-term market volatility and focus on long-term growth trends, identifying high quality assets in attractive markets, as well as our balance sheet strength, are key pillars of that strategy.”
1 As at March 31, 2022