Friday, 14 November 2014
INTERNOS exchanges contracts for the acquisitions of NH Hotel Cologne MediaPark (DE)
INTERNOS Global Investors, the pan European owner-managed real estate fund manager with €4.1 billion AUM, has exchanged contracts for the acquisition of the NH Hotel Cologne MediaPark from InfraRed Capital Partners' Active Real Estate Fund II S.a.r.l. for €29.5 million, on behalf of the INTERNOS Hotel Real Estate Fund.
Art-Invest Real Estate Management acted as InfraRed's asset management partner in the transaction. The hotel is being operated on a long lease with the NH Hoteles Group from Spain.
This acquisition will be the 12th hotel acquired for the Fund since its 1st Closing just over two years ago.
This 4* Hotel provides 217 rooms, a restaurant, bar and ten conference rooms. It is very well located in Cologne’s city centre in the heart of the Mediapark complex, home to 250 companies. The Hotel’s strategic location, quality of this modern building, long lease and strong tenant make this hotel a perfect fit with the fund’s investment strategy.
Following this acquisition the fund will have close to €400 million of AUM and is forecast to reach nearly €500 million total AUM once all capital is deployed via further acquisitions currently in process. To date the Fund has distributed each year dividends of over 8% p.a. and achieved total returns in excess of 11% p.a. since its 1st closing. Due to its predominantly fixed rents, long leases and fixed. very low interest rates the Fund is set to continue generating such high annual income returns for the next few years.
Jochen Schäfer-Suren, partner managing the INTERNOS’ Hotel and Leisure division and the Fund, commented: “We are proud to now acquire the 12th hotel for the Fund and will continue to acquire more hotels for this Fund, which we launched with €75 million of equity at first closing; but now have more than tripled equity, and expect to reach close to €300 million equity and thus €500 million AUM as its very high, yet secure income profile attracts institutional capital.”