Travel and hospitality sector real estate manager Noble Investment has raised $1bn (€915.4m) for its fifth value-add US property fund.
The manager said the Noble Hospitality Fund V (Noble Fund V) fund received capital commitments from a global institutional base, including public state pension plans, corporate pensions, endowments, foundations, insurance companies, and wealth management firms.
IPE Real Assets previously reported that the New York State Common Retirement Fund had approved a $200m commitment to the fund. Lodging real estate investment trust Host Hotels & Resorts also made a $150m commitment to Noble Fund V.
Noble Fund V, the latest of Noble’s flagship series of real estate funds focused on value-added investments in select-service and extended-stay hotels, was backed by 90% of the manager’s existing limited partners as well as several new institutional investors, Noble said.
Mit Shah, Noble Investment’s CEO, said: “The overwhelming support of Noble Fund V reflects the enduring trust of our limited partners, and we remain deeply grateful for their continued confidence in us as their fiduciary.”
Adi Bhoopathy, a managing principal at Noble Investment, said: “We are proud to have reached our equity hard cap during this highly competitive fundraising environment when investors are exceedingly selective.
”The repeat commitments from our existing limited partners and new commitments from prominent institutional investors reflect the distinct advantage of our Noble platform.”
Ben Brunt, a managing principal at Noble Investment, said: “The magnitude of loan maturities combined with record amounts of past-due renovations have created a generational investment opportunity for Noble to acquire income-producing hotels, recapitalise owners, and add value both operationally and physically.
“Over multiple cycles, we have demonstrated that our experience, patience, and discipline allow us to deploy capital opportunistically.”
George Dabney, a managing principal at Noble Investment said since the second quarter of 2021, Noble has made $2bn of new investments, “enhancing operational performance, delivering asset appreciation, and subsequently averaging a double-digit equity distribution each year.
“We continue to source opportunities not readily available to the open market, utilising Noble’s vertically integrated competencies to make our investments more efficient, more profitable, and more valuable”.
Kevin Grass, a managing principal at Noble Investment, said: “Noble remains a leader in advancing design, innovation, technology, and energy-efficient solutions, helping drive performance and a stronger future for our investors, our communities, and our industry.”
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