City ID bags €500 million war chest in APG and Aware Super deal

George Sell George Sell Uploaded 16 September 2020


Netherlands: APG and Aware Super will fund the growth of Amsterdam-based aparthotel operator City ID to the tune of €500 million over the next four years.

City ID currently has three operational assets in Amsterdam comprising more than 250 units. Its most recently opened properties, Boat&Co and Twenty Eight, consistently achieve one of the highest customer ratings in the city.

APG, on behalf of its pension fund clients, 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 €500 million 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, CEO 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 very 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. In the 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 deal possible including the teams of City ID, APG, Aware Super and the advisors."

Robert-Jan Foortse, head of European property investments at APG said: “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.”

APG is the largest pension provider in the Netherlands managing approximately €524 billion in pension assets.

Previously known as First State Super, Aware Super in September 2020 is one of Australia’s largest funds. It merged with VicSuper this year and together they manage more than $125 billion in savings for more than a million members located across Australia.

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



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