DTZ Corporate Finance has joined forces with German-Danish investor and asset manager Euro Ejendomme to launch a new hotel fund with a target size of EUR500 mln. The Euro Ejendomme Hotel Fonds I will run for seven years and be structured as a Luxembourg SICAV investment vehicle. It will be open for investment from both German and other European institutional investors. DTZ will be the coordinator and manager.
DTZ Corporate Finance has joined forces with German-Danish investor and asset manager Euro Ejendomme to launch a new hotel fund with a target size of EUR500 mln. The Euro Ejendomme Hotel Fonds I will run for seven years and be structured as a Luxembourg SICAV investment vehicle. It will be open for investment from both German and other European institutional investors. DTZ will be the coordinator and manager.
The investment vehicle will focus on business hotels ranging from two to four star operations in German-speaking markets. The fund will invest in assets with a value of at least EUR10 mln. The companies said they are aiming for an Internal Rate of Return of 8%. The fund is expected to be launched at the beginning of 2009.
‘What is attractive in this market segment is the operational contract which runs for 30-50 years. This means that the hotel sector has a different cycle than other property assets,’ said Marc Thiel, director of Euro Ejendomme.
