Swedish property investor and developer AMF Fastigheter has entered into an agreement with Nordic Choice Hotels to develop two hotels in Stockholm, Sweden.
Touted to be the biggest hotel contract in the history of Stockholm, it will provide a total of 540 rooms for UrbanEscape Stockholm, AMF Fastigheter’s latest mixed-use 130,000m² development.
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Occupying an area of 30,000m², these two hotels will be developed on a 20-year lease term. Both the hotels will include lounges, cafés, conference and co-working spaces, showrooms and permanent office space.
AMF Fastigheter CEO Mats Hederos told hospitalitynet.org that: "After extensive analysis, we believe this combination of hotels, services and offices, integrated with a unique retail and leisure offer, will provide our investors with the best returns.
"It is the largest project we have undertaken and we are certain that it will safeguard our development pipeline for the future. With an average return of 7% in the last five years across all of AMF Pension’s investment streams, our property portfolio has produced returns of 6.6% and 7.2% in the last ten and 20 years respectively, highlighting property’s effectiveness at balancing a capital portfolio."
Construction on Urban Escape Stockholm is scheduled to start by the end of this year, with the hotels opening by early 2017.
Urban Escape Stockholm is one of the most significant urban regeneration projects, comprising of 62,000m² of central, modern, flexible office space and 38,000m² of retail and leisure in addition to the 30,000m² of hotel and conference space.
