INTERNOS Global Investors, the €2 billion owner-managed real estate fund management firm, announces a new separate account mandate from the Saxony Doctors Pension Fund, Germany (Sächsische Ärtzeversorgung ‘SAEV’) to invest up to €200 million in European hotel real estate in value add opportunities. The strategy is to acquire hotels, add value to the properties at various levels using INTERNOS’ active hotel investment and asset management skills and then sell them within a three-five year horizon. The acquisitions will be funded with €100 million of equity and up to 50% debt allowing hotel investments of up to €200 million. INTERNOS plans to deploy this capital within the next 18-24 months.
A strategic decision of SAEV to invest significant capital into real estate via the Master-KAG, Institutional Investment Partners (2IP), allows SAEV to then select expert, ‘best in class’ fund managers to invest and manage within different real estate asset classes various sub-portfolios within that master real estate portfolio. INTERNOS was selected due to our pre-eminent expertise and experience in hotel real estate across Europe to invest this capital and manage this future portfolio of hotels.
The mandate will be managed by INTERNOS Hotel and Leisure team led by Jochen Schaefer-Suren, founder of INTERNOS Hotel and leisure division and INTERNOS partner in charge.
Jochen Schäfer-Suren commented: “This new mandate allows us to expand the range of hotel investments to 'Value Add' opportunities in hotel real estate across Europe. Due to its distinct strategy it complements our ‘core’ income hotel fund, for which we just announced a second closing with now total investment capacity of €400 million, and adds €200 million of hotel investment capacity across Europe. INTERNOS has therefore become one of the leading hotel investment in Europe with investments and investment capacity of up to €600 million in this specialist real estate class. ”
INTERNOS Executive Chairman, Jos Short commented: “We are delighted to have a new important client for our Hotel and Leisure division, which is growing in stature and reputation. We are in particular pleased to have more capital to deploy in a strategy which is complementary to our ‘core’, income hotel fund”.