(May 4, 2012) One of the largest European pension fund investors has made good its plans to push into Asian real estate with two deals to develop and expand a range of hotels across India.
APG, the asset management arm that spun out of pension giant ABP, has bought a 6% minority stake in Lemon Tree Hotels, a company offering the largest chain of mid-range accommodation across India, the hotelier announced this week.
Additionally, the pension investor announced a joint venture with the Indian operator to develop a separate range of accommodation called Fleur Hotels Private. This deal will develop and own 4,500 rooms by the end of 2016.
Daan Van Aert, Head of Non-listed Real Estate Asia for APG, said Asia was a region of significant expansion: “We view China and India as the major growth engines of the global economy and will expand our footprint further in these markets. India’s consumption-led economy provides incremental diversification benefits to our portfolio.”
APG announced in 2010 that it intended to invest more in real assets in Asia.
Sachin Doshi, Senior Portfolio Manager for APG, said there was significant growth potential in the region: “With one of the world’s fastest growing economies, strong domestic consumption, rapid urbanization and young demographics, India presents an attractive long term investment opportunity for us.”