Schroders Capital has announced that its debut discretionary pan-European operating hotels fund has exceeded the €500 mln hard cap target with its final close.
In total, The Schroders Capital European Operating Hotels Fund has reached €525 mln of investor commitments after having initially targeted €300 mln, as result of significant investor interest in the strategy.
Investors encompassed some of Europe’s largest insurance companies, primarily from France, the Netherlands and Finland, as well as a sovereign wealth fund from the Middle East.
Sophie van Oosterom, global head of real estate, Schroders Capital, commented: 'We are really pleased with the strong support and recognition we’ve received from our clients for the team and the fund. Our hands-on operational approach to this sector is a real differentiator.'
Assuming moderate leverage, the fund has €850 mln of capital to invest across Europe, according to the firm.
Frederic de Brem, head of real estate hotels, Schroders Capital, added: 'Covid-19 has been a massive learning experience, even for our highly experienced team.
'Our cost management skills have been carefully honed over the last year on the 50+ hotels currently managed by the team and we believe this will enable us to be even more effective in our new deal underwriting.
'We’re not a private equity player looking to generate out-sized returns by making large, risky recovery plays on distressed assets in average locations; we’re focused on securing off-market deals offering deal security to sellers of high quality assets in great locations that can benefit from further asset management optimisation.
'The fund’s acquisition of the 5* Grand Hotel Central in Barcelona last month exemplifies this strategy. We have an active pipeline and hope to announce further investments in the coming months.'
