Internos Global Investors is buying the Maritim Hotel Dresden for €49m from a fund managed by Axa Investment Managers.
It is the ninth hotel acquired by the fund manager for its Hotel Real Estate Fund since its first close 18 months ago.
Including the four star 328-room hotel, the fund now has €310m assets under management, and based on an additional equity raise final AUM is forecast to reach €400m.
Internos said the vehicle is poised to continue to generate income returns in excess of a 7.5% dividend pa in the next few years, due to its growing hotel portfolio with a strong cash flow, long leases with mostly fixed indexed rent and low interest rate financing fixed for five years.
Jochen Schäfer-Suren, partner in charge of Internos’ Hotel and Leisure division, said: “Despite tripling the equity raised since the first close in July 2012, we have now deployed around 90% of the total equity raised in line with the investment strategy and while exceeding target income returns of 7.5% pa.
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 circa €400m AUM.
“Later in 2014, we plan to launch a successor fund to our first hotel real estate fund focused on a core, income-oriented investment strategy and three- and four-star existing leased hotels across Europe.
“In parallel we plan to invest the €200m 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.”
bridget.oconnell@estatesgazette.com
