Redevco and Swiss Finance & Property (SFP) have joined forces to launch a joint venture focused on acquiring hotel assets in Spain and Portugal.
The move follows the first close of a fund managed by SFP that has indirectly taken a majority stake in Redevco’s Next Gen Stays value-add strategy comprising a seed portfolio of six assets across Iberia, in Spain Lisbon, Porto, Bilbao, Malaga and Seville.
The strategy is targeting a net levered internal rate of return of 15%-plus over a five-year period and aims to build up a portfolio of around €300m, Redevco sources said.
Hannah Evans, investment director at Redevco, said: “Our value-add Next Gen Stays strategy is an excellent example of Redevco’s focus on repurposing assets to create vibrant places in urban locations.
”By acquiring and redeveloping strategically located and under-exploited real estate with local character, we create an attractive investment product and make cities more sustainable.”
Patrick Brenninkmeijer, business development director at Redevco, said: “Redevco and SFP will now be working to capitalise on the resurgence and growth in the youth tourism and experience travel market and we look forward to creating a professionally managed hospitality portfolio in key cities in the Iberian Peninsula together.”
Philipp Braunwalder, CEO Swiss Finance & Property UK, said: “Working alongside Redevco on yet another project tailored for the younger demographic has been both fulfilling and inspiring. We are excited to venture into the hospitality sector with a trusted partner by our side.
”At SFP, our commitment to providing innovative real estate solutions for future generations remains steadfast, while prioritising community enrichment and sustainable development.”
He added that the SFP fund will look to increase its stake in the joint venture through further capital raises to acquire additional pipeline assets.
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