Internos Global Investors, the London-based private equity real estate firm, has made yet more headway with its European hotel division as it reveals a €100 million separate mandate with Germany’s Saxony Doctors Pension Fund, Germany (Sächsische Ärtzeversorgung).
The commitment comes on top of Internos’ core-income Hotel Real Estate Fund I that the company has been busy raising and for which it held a second close in July on €210 million of equity.
Internos said the plan for its separate account client was to invest up to €200 million in European hotel real estate value add opportunities when factoring in 50 percent leverage to reach that investment volume.
The strategy is to deploy capital within 18 months to 24 months and exit the assets within three years to five years.
Dresden-based Saxony Doctors Pension Fund is using the German investor-friendly Master-KAG structure to invest with Internos and other fund managers within different real estate asset classes within various sub-portfolios.
The mandate will be managed by Internos’ hotel and leisure team led by Jochen Schaefer-Suren, founder of the firm’s division and the partner in charge.
Schäfer-Suren said of the agreement: “This new mandate allows us to expand the range of hotel investments to value add opportunities in hotel real estate across Europe. Due to its distinct strategy it complements our core income hotel fund. Internos has become one of the leading hotel investment in Europe with investments and investment capacity of up to €600 million in this specialist real estate class. ”
Executive chairman, Jos Short, added the firm’s hotel and leisure division was growing in stature and reputation.
According to the pension’s website, The Saxony Doctors Pension Fund has fixed income securities, venture capital and real estate components in its portfolio. The real estate element is not allowed to grow above 25 percent of assets. It enters into direct deals, stakes in property companies and investments in property funds.