Australia: Sydney-based super fund Aware Super has acquired APG’s stake in aparthotel owner and operator The July.
The investment forms part of the super fund’s plan to invest £5.25 billion in the UK and continental Europe over the next five years, targeting real estate, infrastructure, and private equity opportunities. It follows the firm’s opening of a London office in 2023.
The July, which in 2020 saw Aware Super and APG acquire an equal stake in the company, currently operates four aparthotels in Amsterdam and London. The current pipeline includes three additional properties in Amsterdam, Dublin, and Lisbon.
Mathieu Elshout, senior portfolio manager – property UK and Europe, Aware Super, said: “With its uniquely diverse customer base, strong growth, and limited supply, the aparthotels market represents a high conviction subsector for Aware Super.
“The July provides an industry leading offer, and the current platform represents a strong base from which to expand the business across Europe. The strong performance of the business since we first acquired a stake in 2020 gives us great confidence in its future, and we are confident this investment will be a strong addition to our portfolio, which will look to deliver robust returns for our 1.2 million members in Australia,” he added.
Alex Goad, co-founder and CEO of The July, said: “This transaction represents an important milestone in the history of The July, as with its high-quality offer, unrivalled locations, and strong development pipeline, the business is ideally placed to benefit from the increased demand for aparthotels across Europe. Aware Super has been a supportive partner for five years, and we look forward to collaborating still further as we take The July to the next level.”
Robert-Jan Foortse, head of European real estate at APG said: “APG was early to identify European aparthotels as an attractive segment within the hospitality industry. The product is still very much under-represented in Europe, and therefore offers substantial growth opportunities.
“Over our holding period we have been very pleased with the financial performance of The July and the progress we have made with the APG sustainability agenda. Yet, when managing our total portfolio, decisions have to be made and our exit from The July is one of them. We wish the company and Aware Super all the success on the next leg of the brand journey as The July looks to expand across major cities in Europe,” he said.
Highlights:
• Aware Super now holds a majority stake in The July after acquiring APG’s share.
• The investment supports Aware Super’s £5.25 billion plan for UK and EU property markets.
• The July operates four aparthotels with three additional sites in development across Amsterdam, Dublin and Lisbon.
• APG exits the investment after five years.
