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Singapore’s GIC to buy stake in citizenM

The deal values company at $2.25 billion

Boutique Design

citizenM hotels, KRC, APG and GIC, Singapore’s sovereign wealth fund, have signed an agreement for GIC to acquire a 25% stake in citizenM, valuing the company at $2.25 billion.

From its inception, citizenM has had two shareholders, KRC Capital (the investment vehicle of entrepreneur Rattan Chadha) and APG (the largest Dutch pension investor on behalf of its pension fund clients). GIC will become citizenM’s third investor. Both KRC and APG will continue to support the growth of the company by committing fresh capital. In total the three shareholders have committed to invest a further $843.4 million of equity for future expansion.

The brand’s first hotel opened 11 years ago at Amsterdam’s Schiphol Airport. The company has operated under an owner/operator model with a lean operational cost structure. For over a decade, the brand was been expanding in Europe, North America and Asia. Its pipeline represents an additional investment of over $1.7 billion.

Photo, citizenM Amsterdam Airport hotel: Courtesy of citizenM