SINGAPORE: Singapore’s sovereign wealth fund GIC has bought a 25 per cent stake in Netherlands-based hotel chain and developer citizenM, it announced on Wednesday (Mar 27).
The investment takes citizenM's enterprise value to €2 billion (US$2.26 billion), GIC said, without revealing the value of its purchase.
Mr Lee Kok Sun, chief investment officer of GIC’s real estate arm, said that citizenM represents an "attractive value proposition of affordable luxury" in urban markets.
"It is well-received by consumers who are increasingly placing value in experience and authenticity. As a long-term global investor, we believe this is a good addition to our overall portfolio of quality assets, and look forward to partnering with the citizenM management team to further add value to citizenM as they expand globally,” he said.
Mr Rattan Chadha, founder and executive chairman of citizenM, said that GIC's investment will help with the company's "bold expansion plans".
He added that he is "thrilled" to have the support of GIC, who "trust our vision and are instrumental in securing out future success".
citizenM, which opened its first hotel in Amsterdam Schiphol in 2008, started with an idea to disrupt the traditional hotel industry by creating a luxury hybrid hotel for today’s modern travellers, the company said on its website.
It now has more than 15 hotels across the world, including at Tower of London, New York Times Square, Paris Gare de Lyon and Shanghai Hongqiao. Another 15 hotels are currently under development.