BNP Paribas REIM and QC SPA of Wonders sign a partnership in the hospitality and wellness sectors with SPA Property Fund

This agreement is a strategic move for both companies. Indeed, BNP Paribas REIM announced its plan to increase its footprint in the hospitality and wellness sectors, where it has been active for more than 10 years. The company currently manages around €1 billion of real estate assets in these sectors in Europe notably through leisure resorts and its outdoor hospitality fund, Plein Air Property Fund 1, in partnership with one of the main players on the market.

For QC Spa of Wonders, this partnership will accelerate the company’s development plans. QC currently operates 12 spas and hotels, with four new openings planned in Italy over the coming years and several initiatives in its pipeline in Europe and in the United States.

At the heart of the partnership is the Spa Property Fund (SPAPF), a real estate fund managed by BNP Paribas REIM Luxembourg SA, where QC Spa of Wonders will be the exclusive operator of the assets. After the acquisition of the iconic QC San Pellegrino spa property, SPAPF recently purchased an asset in Viale Certosa in Milan, that will undergo a deep transformation into a spa and hotel managed by QC Spa of Wonders.

The goal of SPAPF is to build a unique platform specialized in spas and hotels entirely leased to QC Spa of Wonders. The fund invests both in already operating properties and in properties to be repositioned to meet QC Spa’s growth and development plans. The fund, which has approximately €120 million value of properties in portfolio and investments already in pipeline, aims to constitute a €300 million portfolio.

As a clear demonstration of alignment of interests, QC Spa of Wonders has joined the existing investor of SPAPF and has become a cornerstone investor in the fund. SPAPF is also now accessible to other professional investors looking for an exposure to the leisure hospitality market, that has proved in recent years to be particularly resilient and capable of providing attractive returns and diversification benefits. This resilience is linked to long-term factors, such as the constant growth in consumption of recreational activities and tourist flows. Beyond this, the spa sector is benefitting of the ever-increasing attention to well-being.

Vincenzo Nocerino, Global CIO at BNP Paribas REIM, said: “We are excited for this partnership with QC Spa of Wonders, a leading player in the spa and wellness hospitality. We strongly believe in fundamentals and growth of this sector as experience spending, especially after the pandemic, is increasingly favored in consumers’ preferences. We are confident that the strategy will match the interest and appreciation of many other investors. BNP Paribas REIM has a deep experience in partnering with hospitality operators, leveraging the combination of both the local teams, in the case of this partnership the Italian Acquisition team headed by Pietro Moro, and a cross-country specialist team, with the recently created Hospitality & Healthcare Practice headed by Paul Darribère.”

Francesco Varni, CEO & Corporate activities and Development at QC Spa Of Wonders, said: “After an extensive search conducted together with our partners at White Bridge Investment, we believe we have found the ideal travel companion to support and accelerate our growth journey in Italy and across Europe. We are leaders in a dynamic and fast-growing market, and we firmly believe in the appeal of the newly launched Spa Property Fund to a broad range of investors. It has been a complex yet exciting journey, and thanks to the dedication of the respective teams, the goal has been achieved. A special thank you to the design, legal, and finance departments within our Group.”
 

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