Schroders Capital acquires NH Collection Milan from Invesco Real Estate’s European Hotel Fund

Munich / Frankfurt am Main, February 13, 2025

Schroders Capital, Schroders’ $97.3 billion private markets business, has acquired the NH Collection Milan CityLife hotel on behalf of one of its pan-European hotel funds from Invesco Real Estate, the global real estate investment division of Invesco Ltd. (NYSE: IVZ) with €85 billion in assets under management.

The sale allows Invesco Real Estate’s European flagship hotel fund to capitalise on the hotel’s strong performance since its completion in 2022 and free up capital for reinvestment.

Built around a former church from the 1930s, the NH Collection Milan CityLife is located in Milan’s Citylife business district, where there is little direct competition. The hotel is known for the quality of its architecture and its wide range of services. Operated by NH Hotels Group, this four-star hotel has 185 rooms and caters to both business and leisure travellers.

Schroders Capital currently manages €3.6 billion^[1] of real estate assets in hotels through its hotel platform, managed by a dedicated team of 40 people in offices in Paris, London and Amsterdam. The team is responsible for a wide range of hotel investment profiles, from independent properties operated directly by Schroders Capital, with or without shareholdings, to hotels operated under management or lease agreements by third parties. Other luxury lifestyle hotels include Hoxton Paris, Hoxton Amsterdam, Standard Ibiza and Grand Hotel Central Barcelona.

Invesco Real Estate’s European Hotel Fund is an open-ended, pan-European investment fund with a diversified portfolio of high-quality, centrally located hotel properties. The European Hotel Fund is only available to professional investors. ^[2] Invesco Real Estate’s hotel real estate team has an 18-year track record of more than €2 billion in investments in the sector and manages 53 hotel investments across 31 brands in 11 countries. Through an active asset management strategy, working closely with industry leaders and focusing on world-class hotels in key European cities, the team has consistently created long-term value.

Thibaut Leonard, Co-Head of Investments, Hotels at Schroders Capital, said: “We continue to invest in high-quality hotels in key European markets with high barriers to entry and proven demand. This is our third hotel in Italy, alongside The Westin Milan and the St. Regis in Venice, as well as the third property for the Schroders Capital European Leased Hotel Fund, which focuses on leases linked to the hotel’s operational performance. We look forward to working with NH Hotels Group on this exciting property.”

David Kellett, Managing Director, Head of Alternative Investments, Europe at Invesco Real Estate, said: “NH Collection Milan CityLife has performed excellently for Invesco Real Estate. The sale, which reflects the hotel’s strong performance since its completion in 2022, allows us to make new investments this year and further expand our renowned pan-European hotel portfolio. The timing for this transaction was well chosen. Due to the established operational recovery, the environment for investments in hotels with significant value appreciation potential is currently favorable.”

The European hotel sector is currently benefiting from positive supply- and demand-side fundamentals combined with attractive relative valuations. The market is experiencing a strong upturn in transaction volume, underlining the attractive momentum for well-positioned investors. Since the acquisition of the NH Collection Milan CityLife hotel by Invesco Real Estate, the Milan market has developed strongly and helped the hotel exceed its initial business plan by almost 15%. ^[3]

In this transaction, Schroders Capital was supported by Legance (legal advice and due diligence), Deloitte (financial due diligence), Artelia (technical due diligence) and CA-CIB (financing). Invesco Real Estate was advised by Eastdil Secured and Hogan Lovells (legal advice). #

¹ As of June 30, 2024.
² The fund is not managed by reference to a benchmark index. The investment concerns the acquisition of shares in an actively managed fund and not in a specific underlying asset. There is no guarantee that these goals will be achieved.
³ Invesco Real Estate as of January 31, 2025.

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About Invesco Ltd.
Invesco Ltd (Ticker NYSE: IVZ) is a global, independent investment management company dedicated to helping people get more out of their lives. With offices in more than 20 countries, our investment teams offer a full range of active, passive and alternative investment opportunities. As of 31 December 2024, Invesco had EUR 1.6 billion in assets under management for clients worldwide. For more information, visit www.invesco.com/corporate.

About Invesco Private Markets
Invesco has global expertise and extensive resources in the private markets space. With our global investment platform and EUR 120 billion in real estate and private credit assets under management, we offer our investors both scale and deep expertise with over 600 investment professionals in 16 countries and over 40 years of innovative experience as of 31 December 2024.

About Invesco Real Estate
Invesco Real Estate is one of the world’s leading real estate investment firms with €79.3 billion in real estate assets under management, 613 employees and 21 regional offices in the US, Europe and Asia. For over 40 years, Invesco Real Estate has been actively investing across the risk/reward spectrum in direct real estate strategies such as core, debt, value-add and opportunistic, as well as in listed real estate assets for over 400 institutional clients. Invesco Real Estate employs over 191 people in Europe in eight offices in London, Munich, Milan, Madrid, Paris, Prague, Luxembourg and Warsaw. Invesco Real Estate manages 205 properties in 14 European countries with assets of EUR 15.3 billion. The team has a wealth of experience across all three commercial sectors as well as hotels and residential real estate as of June 30, 2024.

About Schroders Capital
The latest press releases from Schroders can be found here: Media Centre | Schroders global

Schroders Capital
Schroders Capital offers investors access to a wide range of private market investment opportunities, portfolio building blocks and bespoke private markets strategies. Schroders Capital’s team is focused on delivering best-in-class, risk-adjusted returns and executing investments through a combination of direct investment and broader solutions across all private markets asset classes, through comingled funds and bespoke private markets mandates. The team strives to deliver sustainable returns through a rigorous approach and in line with a culture of performance, collaboration, and integrity. With $97.3 billion (£77.0 billion; €90.8 billion) in assets under management*, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (impact specialists). *Assets under management as of June 30, 2024 (including non-royalty dry powder and internal cross-holdings).

Schroders plc
Schroders is a global asset manager offering active wealth management, wealth management and investment solutions, with assets under management of £773.7 billion (€912.6 billion; $978.1 billion) as of 30 June 2024. As a UK FTSE100-listed company, Schroders has a market capitalisation of approximately £6 billion and employs over 6,000 people across 38 locations. Schroders was founded in 1804 and has remained true to its roots as a family business. The Schröder family is still a significant shareholder, holding around 44% of the issued share capital.

Schroders’ success is due to its diversified business model, which covers different asset classes, client types and geographies. The company offers innovative products and solutions through four core business areas: Public Markets, Solutions, Wealth Management and Schroders Capital, which focuses on private markets, including private equity, investments in renewable infrastructure, private debt & credit alternatives and real estate.

Schroders strives to deliver investment excellence to its clients through active management. This means that capital is directed towards resilient companies with sustainable business models that align with clients’ investment objectives. Schroders serves a diverse client base that includes pension funds, insurance companies, sovereign wealth funds, foundations, high net worth individuals, family offices as well as end clients through partnerships with distribution companies.

Issued by Schroder Investment Management Limited. Registration No. 1893220 England. Authorised and regulated by the Financial Conduct Authority. For regular updates by e-mail, please register online at www.schroders.com for our Alerting Service.

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Risk Disclosures
Full information on the risks can be found in the sales documents. The value of investments and the income from them are subject to fluctuations. This may be partly due to changes in exchange rates. It is possible that investors may not receive back the full amount invested when they return their shares. Real estate investments can be illiquid and difficult to dispose of, so the fund may not be able to sell its assets at the desired time and price. This can have a negative impact on the liquidity of open-ended funds and lead to long delays before the fund can fulfill redemption requests. The value of real estate investments is usually determined by an appraisal by an independent appraiser and may not be realizable. Real estate investments are usually not listed on the stock exchange and must be valued using appropriate models (which may be used by independent experts): this can lead to valuations that may not be reflected in transaction prices. Changes in market rents, net operating income, interest rates, exchange rates, market trends, and general economic conditions may cause fluctuations in the value of real estate assets, funds, and the amount of cash flows generated by the fund portfolio. The fund may use derivatives and loans, which may result in significant leverage of the fund and large fluctuations in the value of the invested capital. Real estate investments and portfolios are subject to counterparty risk, i.e. the risk that a counterparty will not be able to meet its obligations. Real estate investments may be subject to new regulatory requirements and trends related to sustainability, which can negatively impact the value of investments that do not meet the requirements. This can lead to a significant investment requirement to meet the prescribed standards or characteristics. In addition, real estate investments may face negative economic impacts resulting from climate change, natural disasters and investors’ general preference for investments with better sustainability characteristics. Real estate investments are labor-intensive and require a high level of human/manual effort and activity and can therefore be exposed to different types of operational risks that can affect activities such as administration, operations, reporting requirements and many others.

Important information
This marketing communication is intended only for trade media in Germany and Austria. This is marketing material and not investment advice. It is not intended as a recommendation to buy or sell any particular asset class, security, or strategy. Regulatory requirements requiring the impartiality of investment or investment strategy recommendations are therefore not applicable, nor is the ban on trading prior to their publication. Views and opinions are based on current market conditions and are subject to change at any time.

For more information on our funds and the risks involved, please refer to the Offering Memorandum, Annual or Interim Reports and Constituent Documents. These documents are available from your local Invesco office. The management company may terminate distribution agreements.

The fund is authorised as a RAIF (Reserved Alternative Investment Fund) domiciled in Luxembourg only for well-informed investors (as defined in the Luxembourg law of 28 July 2023) and distribution in the EEA is only permitted to professional investors. The fund is an open-ended, unregulated Luxembourg fund. It qualifies as an alternative investment fund (AIF) managed by Invesco Real Estate Management S.à r.l. as an external alternative investment fund manager (AIFM).

The Fund will not be marketed in other countries, and marketing materials of the Fund may only be distributed in other countries without public advertising and in accordance with the laws, rules and regulations governing private placements of those countries, if any. The marketing of the Fund in certain countries may be restricted by law.

Data as of January 17, 2025, unless otherwise stated.

This document is issued in Germany and Austria by Invesco Real Estate Management S.a.r.l., President Building, 37A Avenue JF Kennedy, L-1855 Luxembourg, supervised by the Commission de Surveillance du Secteur Financier in Luxembourg.

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