Invesco Real Estate has sold a portfolio of seven hotels from its second pan-European hotel fund for €415 mln.
The buyer is Pandox, a listed Swedish hotel company.
The properties are located across Austria, Germany and the Netherlands, and part of the NH, Radisson Blu and Park hotel brands. Following the close of the sale, due to take place on 19 December 2016, the fund will be disinvested.
'We are delighted with the success of our second hotel portfolio for our investors, the sale of which is part of our strategic planned approach for the fund. We were able to manage the portfolio during an interesting market cycle and will realise a return for our investors above the fund’s original target of a net IRR of 12%, prior to the formal end of the fund’s life,' commented Marc Socker, managing director, Hotel Fund Management, Invesco Real Estate.
IRE was one of the first investment managers to launch a dedicated hotel fund in 2006, with its successor fund launched in 2011. Since then it has invested over €2 bn into the sector.
'IRE has an 11-year track record of investing within the pan-European hotel sector and we plan to continue that legacy. We believe the sector continues to offer attractive performance characteristics, a compelling income return and inflation-hedging requirements that most of our investors are looking for and continue to see interest from a number of wide-ranging clients around the world,' concluded Socker.
Eastdil advised Invesco Real Estate during the transaction while law firm Paul Hastings acted as legal advisor.
