Internos, the European owner-managed real estate fund manager, said on Wednesday that it has held the first close of its Hotel Real Estate Fund after securing initial equity of EUR 75 mln from four German institutional investors.
Internos, the European owner-managed real estate fund manager, said on Wednesday that it has held the first close of its Hotel Real Estate Fund after securing initial equity of EUR 75 mln from four German institutional investors.
Internos has also exchanged contracts for the purchase of its seed portfolio comprising four hotels with a total investment of over EUR 100 mln with related debt provided by Bayern LB. The hotels are 3-4-star hotels with a long trading record, located in major cities in Germany and the Netherlands and operated by three different major hotel groups under long leases.
The company said 'the asset locations in the core eurozone, high stable income, diversification and conservative debt of 40% contribute to the low risk profile and reflect Internos’ strategy for institutional, core investors in today’s risk averse market'. The portfolio's pricing and low interest rates lead to forecast dividend yields and IRRs of 7.5+% net and 11+% respectively.
The fund is structured as a German ‘Spezial Fonds’ operated by Internos’ Kapital Anlage Gesellschaft (KAG). Internos expects to raise additional equity for the fund to reach AUM of up to EUR 300 mln in order to acquire several hotels which are under detailed negotiations. The fund will be managed by Jochen Schaefer-Suren, the partner in charge of Internos’ Hotel & Leisure division as well as Paul Muno and the remaining Internos KAG team in Germany.
