Specialist business property adviser, Christie & Co has recently provided pre-acquisition due diligence support and advice on the local serviced apartment market for Hamburg-based investor, Union Investment Real Estate GmbH (“Union Investment”) as part of their acquisition of what is set to become Amsterdam’s tallest building, the Y-Towers development scheme, in Amsterdam.
The major project, which was taken forward from IES Immobilien and Invester United Benefits will feature two towers, comprising a 579-room Maritim conference hotel and a neighbouring residential tower housing 174 apartments and 103 serviced apartments. The project, located in the Overhoeks district north of the River IJ in Amsterdam, is valued at around €460 million and is scheduled for completion at the end of 2022. Once completed, it will feature the tallest building in the city with 33 floors and the wider development will cover a gross floor area of 106,000sq m.
The appointment came as a result of Christie & Co’s expertise in the serviced apartment sector, combined with a unique reach and insight in the local market. Olivia Chaplin, Director of Hotel Consultancy at Christie & Co, who led the project team comments, “We were delighted to assist Union Investment on this acquisition.
This is an extremely competitive and attractive market for investors, and hotels and serviced apartments continue to perform well as a result of sustained demand from visitors combined with restrictions on new supply. Given the growth of the serviced apartment sector in Europe, the presence of operators with expertise in the field, strong prospects for local accommodation demand, efficiency of the operating model for longer-stay accommodation and the fit of such an offering within this wider mixed-use development scheme, it is easy to see why this was an attractive investment.
“Through our experience in the local market and understanding of key market trends, we were able to offer valuable advice relating to future performance, hotel positioning, potential branding options and market lease terms.”