The second closing of INTERNOS Hotel Real Estate Fund follows the first closing with €75 million equity from the four founding investors. In the second closing INTERNOS raised new commitments of €135 million from three new German pension fund investors and additional commitments from the four founding investors, which nearly doubled their initially committed equity of €75 million. INTERNOS has now closed the fund to new investors but expects the fund to reach total equity of circa €225-230 million.
Since its launch in July 2012, the Fund has acquired or committed to acquire seven hotels across Germany, Austria and the Netherlands for circa €200 million. Based on further transactions in process, INTERNOS expects the Fund’s investments to reach €250-300 million within the next 6 months and €400 million of assets under management by late 2014 as INTERNOS deploys the additional equity.
In its first year of operation, the Fund has paid distributions to its investors equivalent to an 8% dividend, thus exceeding the Fund’s targets.
INTERNOS’ hotel fund is structured as a German ‘Spezial-fonds’ operated by INTERNOS’ Kapitalanlagegesellschaft (KAG). The fund manager is Jochen Schäfer-Suren, who is also the Partner that founded and leads INTERNOS’ hotel and leisure division. In regard to the Fund, he works closely with Paul Muno who is INTERNOS Partner of our German office and, like Jochen Schaefer-Suren, a Managing Director of INTERNOS’ KAG in Frankfurt.
Jochen Schäfer-Suren, Partner and Managing Director of INTERNOS’ Hotel and Leisure division, commented: “The Fund’s success is due to our focus on low risk, existing 3-4* hotel assets with a good track record and long leases in major cities in the stable, core Eurozone countries as well as the low interest financing environment. Moreover, the Fund’s “club” nature of a small number of German investors with a coherent regulatory, legal, accounting and reporting framework has strengthened its appeal from the outset.”