Invesco Real Estate (IRE) has announced the sale of a hotel portfolio from its second pan-European hotel fund to Swedish operator Pandox for €415m.
The global real estate investment manager is selling seven hotels located across Austria, Germany and the Netherlands, and part of the NH, Radisson Blu and Park hotel brands. Following the close of the sale, due to take place on 19 December 2016, the fund will be disinvested.
“We are delighted with the success of our second hotel portfolio for our investors, the sale of which is part of our strategic planned approach for the fund. We were able to manage the portfolio during an interesting market cycle and will realise a return for our investors above the fund’s original target of a net IRR of 12%, prior to the formal end of the fund’s life,” said Marc Socker, managing director, hotel fund management at Invesco Real Estate.
“IRE has an 11-year track record of investing within the pan-European hotel sector and we plan to continue that legacy. We believe the sector continues to offer attractive performance characteristics, a compelling income return and inflation-hedging requirements that most of our investors are looking for and continue to see interest from a number of wide-ranging clients around the world,” Socker.
IRE was one of the first investment managers to launch a dedicated hotel fund in 2006, with its fund launched in 2011. Since then it has invested over about €2bn into the sector.
Andy Rofe, managing director, Invesco Real Estate Europe adds: “Our aim is to build on IRE’s track record across Europe and are delighted with the demand from a number of our existing mandates to add hotels to their diverse portfolios. Our traditional approach has been to focus on modern mid-market hotels in strategic locations such as city centres, airports and conference centres, however, our diverse global client base have different risk/return appetites which means we are investing in a number of different hotel concepts from hostels and mezzanine loans to extended stays.”