Internos Global Investors, acting on behalf of the Internos Hotel Real Estate Fund, has sold the Maritim Hotel Dresden for €58.4m to Frasers Hospitality Trust, a global hotel and serviced residence trust listed on the Singapore Exchange.
The property is an existing 4-star hotel with 328 rooms operated under a long term lease by the Maritim Group and acquired on behalf of the Hotel Fund for €49m in 2014. The sale benefits from the current favourable market conditions and follows the successful implementation of a lease restructuring and extension in line with Internos’ strategy to create value in our funds under management.
With this sale, Internos will complete a successful disposal process that allowed to exceed IRR target returns of 11%. The Hotel Fund therefore has not only distributed dividends of over 8% p.a. every year since its first Closing in 2012 but also has achieved above target total returns. The proceeds of the disposal shall be redeployed in new hotel real estate investments in the Eurozone in line with the Fund’s strategy. Due to its predominantly fixed rents, long leases and fixed low interest rate financing the Fund, with AUM of approximately €440m, is believed to be able continue generating high income returns for the next few years.
Jochen Schäfer-Surén, partner in charge of managing Internos’ hotel and leisure division and the Fund, commented: “We are pleased with our disposal process that highlights how the Fund’s prudent strategy to date has achieved in excess of target dividend distributions and IRRs and now allows redeployment of this capital.”
