European investment manager Internos has closed the acquisition of four assets for its Hotel Real Estate Fund.
European investment manager Internos has closed the acquisition of four assets for its Hotel Real Estate Fund.
Internos, the owner-managed real estate fund manager founded by Jos Short and Andrew Thornton, has spent over EUR 100 mln to acquire the hotels from operators Accor and Lindner Hotels Group as well as German property developer GBI. Financing for the properties, reflecting a 40% leverage, was provided by Bayern LB.
The hotels - MGallery Amsterdam, MGallery Cologne, Lindner Congress Hotel in Frankfurt and Park Inn Hotel Nuremberg - have long and stable trading records and are operated under long leases by Accor, Lindner Hotels and Rezidor.
Internos, jointly with the tenants, plans to invest over EUR 14 mln in the hotels.
'The completion of these four acquisitions with historical low interest rates secured very attractive returns and a good risk diversification from day one,' said fund manager Jochen Schäfer-Suren. The hotel fund has a total target volume size of up to EUR 300 mln. 'The four-hotel seed portfolio represents our conservative investment strategy of acquiring only 3-4-star hotels in the core-euro zone under very long leases.'
