INTERNOS Global Investors (INTERNOS), the pan-European, owner-managed real estate fund manager with €4.1 billion of AUM announces the exchange of contracts for the acquisition of the Maritim Hotel Dresden for €49 mln from a fund managed by Axa Investment Managers, on behalf of the INTERNOS Hotel Real Estate Fund. This is the ninth hotel to be acquired for the Hotel Fund since its first closing 18 months ago.
The property is an existing, high-quality, 4-star hotel with 328 rooms in a strategic location between the Dresden Conference Centre and Saxony’s State Parliament and only 500m from the famous Semper Opera. The hotel opened in 2006 and is operated under a long lease by the Maritim Group. The hotel’s quality, strong income and strategic location fit perfectly with the Hotel Fund’s investment strategy and enhances its risk diversification by adding a new hotel brand, a new tenant and one more city to the fund’s portfolio.
After the last two acquisitions assets under management for the Hotel Fund will now reach ca. €310 million. Based on additional equity raised total, final AUM is forecast to reach €400 million. The Hotel Fund is poised to continue to generate income returns in excess of 7.5% dividend p.a. for the next few years, due to its growing hotel portfolio with a strong cash flow, long leases with mostly fixed indexed rent and very attractive low interest rate financing fixed for five years.
Jochen Schäfer-Suren, Partner in charge of INTERNOS’ Hotel and Leisure division, commented: “Despite tripling the equity raised since the first closing in July 2012, we have now deployed ca. 90% of the total equity raised in line with the investment strategy and while exceeding target income returns of 7.5% p.a. In addition we have two or three more acquisitions in progress and thus expect to deploy the remaining equity by mid-2014. At which point the fund will reach ca. €400 million AUM.
“Later in 2014, we plan to launch a successor fund to our first hotel real estate fund focused on core, income oriented investment strategy and 3-4* existing leased hotels across Europe. In parallel we plan to invest the €200 million capital from our Value Add Mandate focused on hotel real estate across Europe with capital growth opportunities via investments in cyclical market recovery, renovations, repositionings or changes in brands, lease structure or operators.”