Invesco aims to double equity in hotel fund by year-end

Invesco Real Estate (IRE) aims to double the initial equity of its second pan-European hotel fund to around EUR 170 mln by the end of the year, Simon Redman, head of product management, has told PropertyEU. 'We are looking at a few deals. I hope we will have at least two further closes later this year.'

In the first six months of this year, IRE committed to roughly $1bn (EUR700 mln) worth of deals including the hotel portfolio as well as offices in Paris and Prague and logistics facilities in Sweden and Poland. The latest deals bring the total amount the investment manager has spent in the last 2 ½ years to roughly $3 bn.

About 80% of all deals are sourced off-market, Redman added. ‘We have transacted in eight countries across Europe this year. We have capital to invest and the excellent deal flow sourced by our transaction teams around Europe has been fairly constant. We’re finding ourselves in the fortunate position that the market sees us investing actively, which leads to access to more opportunities and capital.’

Redman claims the number of new institutional clients has grown by 40% over the past 18 months, primarily from the US, Germany, the UK and France, but also the Benelux and Finland. ‘The French haven’t traditionally invested outside their home market, that is an evolving market.’ Late last year, French partner Ciloger was one of the first French fund managers to seal a deal in Germany with the purchase of a portfolio of 10 shopping centres for EUR 218 mln. Invesco identified the investment and is responsible for the asset management, Redman said, adding he expects to see more of such deals in the future.

With assets under management of EUR 3.8 bn in Europe, Invesco Real Estate ranks 82nd in PropertyEU's ranking of top investment managers in Europe -listed and non-listed. The complete ranking is included in the September issue of PropertyEU. Click on the link below to subscribe