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Real Estate

Schroders acquires hotel investment firm Algonquin

Schroders announced it acquired specialist pan-European hotels investment and management firm Algonquin, in a deal that helps bolster the firm's private assets and alternatives business.

Algonquin has €1.8 billion ($2.2 billion) in assets under management. The acquisition also sees Schroders acquire various co-investments alongside existing Algonquin clients, said a news release Thursday. Schroders will acquire 100% of the firm, a spokeswoman said.

Algonquin acts as both an equity investor and independent operator in the hotels sector. The firm co-invests alongside other investors and also oversees all operational issues related to the sector.

The deal adds to Schroders' real estate business — the firm manages 13.2 billion ($18.2 billion) in real estate strategies — and bolsters the private assets and alternatives business. The unit, which has about 33 billion in assets under management, includes securitized credit, private equity, infrastructure finance, insurance-linked securities and real estate strategies.

The integration of the two firms is effective immediately, the release noted. Financial terms were not disclosed.

The deal complements the firm's real estate focus in sectors including offices and retail sites, said Duncan Owen, global head of real estate at Schroders, in the release. He said Algonquin's client base "includes some of Europe's largest financial institutions and the quality and experience of its employees are some of the principal reasons why Schroders is acquiring the business."

Algonquin CEO Frederic de Brem will join Schroders as head of Schroder real estate hotels. Further details on the deal, including from whom the firm was acquired, could not be learned by press time.

Schroders has 447 billion in assets under management.