INTERNOS acquires the Vincci Selección Posada del Patio in Malaga for the Internos Hotel Real Estate Fund II for € 26.75 Million
INTERNOS Global Investors, the pan-European owner-managed real estate fund management firm with €3.5 billion AUM, confirms the closing of the acquisition of the Vincci Selección Hotel Posada del Patio in Malaga for €26.75 million from Dospuntos, a real estate company controlled by Värde Partners. This acquisition follows the first closing of INTERNOS’ second hotel real estate fund with equity of €133 Million from seven German institutional investors. All but one of these investors had already invested in Internos’ first hotel real estate fund, a core fund launched in 2012 which has consistently exceeded target returns and became fully invested in 2016 with its AUM recently reaching €500 Million.
The 5* Vincci Hotel is situated in the Old Town in walking distance of Malaga’s main attractiions and the major shopping street “Calle Larios” . The property has 106 rooms, two restaurants, a bar, 5 meeting rooms, a spa and a rooftop terrace with a swimming pool overlooking the Old Town. The hotel is operated under a long-term lease with Vincci Hoteles under its upscale Vincci Selección brand. Vincci Hoteles is a leading Spanish hotel group with a clear focus on four and five star business hotels with their two main brands, Vincci and Vincci Selección.The group currently operates 39 hotels in 3 countries (Spain, Portugal and Tunisia) representing about 5,700 rooms.
This represents the first acquisition for INTERNOS’ Hotel Fund II, which pursues a value-add strategy focused on the acquisition of 3-5* city centre business hotels across Europe that offer the opportunity to add value. Following its first closing, INTERNOS expects that similar to its first Hotel Fund I, the committed equity for this second hotel fund will increase significantly allowing further investments so that the new hotel fund’s AUM should also reach €500 Million by late 2019/ 2020.
Jochen Schaefer-Suren, Partner managing INTERNOS’ Hotel and Leisure division, commented: “The Vincci Selección Posada del Patio is a very attractive first acquisition for our new hotel fund as it offers a core location in the city center of Spain’s fifth largest city and several value-add opportunities at the asset level. In addition, at the market level, the local hotel market has recorded strong growth in the last few years and the quality of Malaga’s attractions and infrastructure suggest the potential for future growth, which is supported by strong interest from numerous international investors for Malaga’s hotel real estate.
In short, this first acquisition is perfectly consistent with the investment strategy of this new value-add hotel fund.”
Looking forward in 2017 and 2018, INTERNOS will continue to manage its existing portfolio of 19 hotels and hopes to acquire more hotel properties for its Hotel Fund II and separate account mandate. Hotel Fund II provides investors with access to value-add opportunities at a point in the cycle where many hotels with long-term fixed income are fully valued in many markets, yet may face rising interest rates and resulting potential value impact over the coming years. In such markets the new strategy focuses on value creation at the individual asset and market level, which can be achieved in any general market context.This highlights the need for a very experienced specialist hotel real estate fund management team to design and implement this value-add strategy.
For further information, please contact:
INTERNOS Global Investors
Jochen Schaefer-Suren, Partner
Head of INTERNOS’ Hotel and Leisure division
+ 44 207 355 8888
+ 44 (0) 20 7920 3150
Jeremy Carey / James Verstringhe / Kirsty Allan
Notes to Editors:
Internos Global Investors (www.internosglobal.com)
INTERNOS Global Investors is a pan-European fund and asset-management platform, specialising in real estate authorised by the FCA in the UK, BaFin in Germany and the AMF in France. An owner-managed independent company, it develops strategic investment and management solutions for institutional investors in all property asset classes across Europe. In addition to its London headquarters, INTERNOS has offices in Frankfurt, Amsterdam, Paris, Lisbon, Luxembourg, Madrid and Milan. The company employs around 100 staff, manages more than 600 properties in a total of 8 countries
To view/download PDF file click here