Internos Global Investors is well advanced in raising close to EUR 50 mln of additional equity for its hotel investment business from German institutional investors. The European real estate fund manager expects to raise more equity in the coming months which could bring the total to about EUR 150 mln.
Internos Global Investors is well advanced in raising close to EUR 50 mln of additional equity for its hotel investment business from German institutional investors. The European real estate fund manager expects to raise more equity in the coming months which could bring the total to about EUR 150 mln.
Internos raised EUR 75 mln from four German institutional investors in the first close of the hotel fund last July.
Jos Short, a founding partner at the European real estate investment manager, said the German-regulated Spezialfonds was targeting EUR 250 mln in assets under management with gearing of about 40%. The fund's strategy is to build a portfolio of existing leased 3 or 4-star hotels in the core countries of the Eurozone to provide high stable income flows to institutional investors at a time when they are struggling to get acceptable returns from government bonds.
'The fund is in due diligence on three new acquisitions from different operators in different jurisdictions,' Short told PropertyEU at Expo Real.
This initial equity was used to acquire three hotels in German and one in the Netherlands for over EUR 100 mln. Financing for the transaction - which closed at the start of October - was provided by German bank Bayern LB. The fund is structured as a German ‘Spezialfonds’ operated by Internos’ Kapital Anlage Gesellschaft (KAG).
The fund is managed by Jochen Schaefer-Suren, the founding partner of Internos’ Hotel & Leisure division. He raised the initial EUR 75 mln and is working on the latest fundraising together with Paul Muno Mng, director of the Internos KAG team in Germany that supports Internos' hotel team based in London .
