Public Sector Pension Investment Board, Ottawa, has formed a joint venture with Eurazeo to invest in European hospitality properties, according to a joint news release Monday.
PSP Investments manages C$204.5 billion ($161.1 billion). Eurazeo has €27 billion ($30.9 billion) under management, including nearly €19.2 billion from third parties, according to the news release. Its portfolio includes private equity, venture capital, private debt, real estate and infrastructure. It is listed on Euronext Paris exchange.
The new partnership will have “a strong sustainability component” that focuses on water consumption, energy usage and carbon emissions to support climate action, according to the release.
A spokesperson could not be reached for immediate comment.
PSP Investments and Eurazeo are investing equally in the joint venture, which will invest up to €300 million in hotels or hospitality portfolios across Europe, targeting properties with value potential from upgrades and related measures, the release said.
The joint venture has already agreed to acquire Spanish hotel group FST Hotels operating under the Ayre brand from Grupo Empresas Matutes and El Corte Ingles, pending regulatory approval, the release said.
Stephane Jalbert, managing director and head of Asia-Pacific and Europe for PSP Investments’ real estate investments, said in the release that the hospitality sector in Europe is expected to present “an attractive recovery play as travel resumes.”
PSP Investments manages the pension assets of Canadian federal public service workers, Canadian Forces, Reserve Forces and the Royal Canadian Mounted Police.
The board’s real estate program focuses on establishing joint ventures with best-in-class partners, according to its website. As of March 31, it had 13.1% of assets in real estate.
Renaud Haberkorn, managing partner of real assets for Eurazeo, said in the release that the firm has invested nearly €900 million in European real estate and is looking for third-party partners to invest in a pan-European opportunistic real estate investment program. PSP Investments is the first partner in Eurazeo’s hospitality group.
Source: https://www.pionline.com/real-estate/psp-investments-targets-european-hotels-joint-venture