Patron Capital has sold a 23% stake in Generator Hostels to Invesco in exchange for up to €60m of growth capital.
Invesco’s stake in Generator is the inaugural investment by Invesco’s second opportunistic vehicle, focussed on real-estate-related investments in the US and Europe and co-managed by Invesco Real Estate, WL Ross & Co, and Invesco Fixed Income.
The capital investment will be used to increase Generator’s global portfolio, which comprises 5,200 beds in eight hostels across Europe.
The group expects to expand the portfolio to 20 properties by 2018, including a number of European cities and at least three cities in the US.
Keith Breslauer, managing director of Patron Capital, said: “We see Invesco as a key partner in Generator’s ambitious growth plans. Through the combined expertise between Invesco Real Estate and WL Ross & Co, particularly in the current US market, we will be able to continue to identify distressed assets to convert into successfully operating hostels – a proven ingredient in the Generator model.”
