LEIPZIG, GERMANY—Internos Global Investors, has closed of the acquisition of the Steigenberger InterCity Hotel Leipzig from B & L Gruppe on behalf of the Iternos Hotel Real Estate Fund I. This is the 10th hotel to be acquired for the Hotel Fund since its first closing 18 months ago.
Together with the recently announced acquisition of the Maritim Dresden, which will close shortly, the latest acquisitions represent around $100 million €70M) of investments for the Internos Hotel Real Estate fund since the beginning of 2014.
The InterCity Leipzig opened in May 2013 and is operated under a long lease by InterCity Hotels, a 100% subsidiary of Steigenberger Hotels. The property is a brand new, high quality, 4-star hotel with 166 rooms, a restaurant, bar and appropriate meeting facilities. It is located in a prime location in the very heart of Leipzig, next to the main train station and opposite the new shopping centre Höfe am Brhl.
The headquarters of the Saxony Landesbank is being developed next to the hotel. The triple A location and the quality of the building and innovative, income oriented hotel concept make this property a perfect fit with the Hotel Fund’s investment strategy. It also brings further diversification to the fund portfolio by adding a new hotel brand, tenant and city.
Following these two recent acquisitions and commitments, assets under management for the Hotel Fund I will reach circa $430 million (€310M). Based on recently raised and expected additional equity, total AUM is forecast to exceed $554 million (€400M).
“Despite tripling the equity raised since the 1st closing in July 2012, we have now deployed circa 90% of the total equity in line with the investment strategy, while exceeding target income returns of 7.5% p.a.,” said Jochen Schäfer-Suren, partner in charge of Internos’ hotel and leisure division. “In addition we have two or three more acquisitions in progress and thus expect to deploy the remaining equity by this summer.” Later in 2014, the fund plans to launch a successor fund that will also focus three- and four-star existing leased hotels across Europe.
“In parallel we are currently pursuing various opportunities to invest the €200 million ($277M) capital from the Value Add Fund,” Schäfer-Suren added.