Schroders’ first European operating hotels fund has raised more than its €500m (£428m) target.
The Schroder Capital European Operating Hotels Fund has reached €525m of investor commitments after initially setting the target at €300m.
Global head of real estate Sophie van Oosterom said: “We are really pleased with the strong support and recognition we have received from our clients for the team and the fund. Our hands-on operational approach to this sector is a real differentiator.”
Investors included some of Europe’s largest insurance companies, primarily from France, the Netherlands and Finland, as well as a sovereign wealth fund from the Middle East.
With moderate leverage, the fund plans to invest around €850m in opportunities emerging across Europe.
Van Ooosterom said the quality of the team had been a significant factor in drawing investors, with 40 dedicated hotel investment and asset management specialists on the ground throughout Europe and a 20-year track record.
Hotels head for Schroders Capital Frederic de Brem said: “We are focused on securing off-market deals offering deal security to sellers of high-quality assets in great locations that can benefit from further asset management optimisation. The fund’s acquisition of the five-star Grand Hotel Central in Barcelona last month exemplifies this strategy. We have an active pipeline and hope to announce further investments in the coming months.”
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