Jochen Schaefer-Suren

Chief Executive Officer

Hotel and Leisure Division

Jochen Schaefer-Suren

Chief Executive Officer

Hotel and Leisure Division

Blog Post

Internos announces the acquisition of two more hotels

March 2013

Internos announces the acquisition of two more hotels

for the Internos Hotel Real Estate Fund

Internos, the pan European, owner-managed real estate fund manager with €1.8 billion AUM, is pleased to announce the recent exchange of contracts for the acquisition of two new hotels – the Ibis Munich City West, Germany, and Ibis City Centre The Hague, Netherlands, – for a total investment of €37 million on behalf of the Internos Hotel Real Estate Fund. The acquisition of the Ibis Munich City West closed this week and the closing of the Ibis The Hague City Centre is planned in the coming weeks. These two acquisitions represent the fifth and sixth hotel Internos has acquired for the Internos Hotel Real Estate Fund. The hotels were acquired in two separate transactions from private vendors.

Both hotels are existing properties with strong cash flow track records, are well located in strategic locations in their respective cities and operated under long leases by the Accor Group. The hotels’ profile and locations in major cities in Germany and the Netherlands – both part of the core euro zone the target investment region for the Fund – fit perfectly in the investment strategy of the Internos Hotel Real Estate fund and add to the diversification of the Fund’s existing portfolio by adding two more cities, one more brand, two strong hotel markets and two very good hotel assets.

The stable income of the six hotels strong portfolio and enhanced diversification together with conservative debt of only 40% LTV contribute to the fund’s low risk profile whilst generating very good income. This reflects well our general strategy for institutional investors in today’s risk-averse market. As a result of the attractive pricing of all six acquisitions to date and due to historically low interest rates, so far achieved and forecast annualised dividend yields are in excess of the 7.5+% p.a. net target together with a forecast IRR of 11+% p.a. net.

The Fund is structured as a German ‘Spezial Fonds’ operated by Internos Kapitalanlagegesellschaft (KAG). Based on additional equity raised from the seed investors and new investors since the first closing the target Assets Under Management (AUM) volume size is forecast to reach or even exceed €300 million. The fund manager is Jochen Schäfer-Suren, Internos Partner in charge of Internos’ Hotel & Leisure division, who together with Internos’ dedicated Hotel and Leisure team works closely together with Paul Muno, Partner and Managing Director of the Internos KAG and the Internos team in Germany.

Jochen Schäfer-Suren commented: “These latest acquisitions together with continued historical low interest rates secured very attractive returns as well as enhanced diversification thus reducing the portfolio’s risk profile further whilst simultaneously enhancing the quality of returns. Due to the continued support of our seed investors and new investors we have raised additional equity that allows us to acquire over €100 million worth of further hotels. Therefore we are actively looking for more hotels to acquire for the remainder of 2013.”

Paul Muno added: “The success of our first fund under the aegis of Internos Global Investors Kapitalanlagegesellschaft (KAG) has proven again that Spezialfonds are still the appropriate investment vehicle for institutional investors in the German market. Accordingly we plan to use our KAG platform to develop additional Spezialfonds products for various sectors and risk profiles and can also respond individually to customer needs and provide customized investment solutions.”

For further information, please contact:

INTERNOS Global Investors

T +44 (0) 20 7355 8800 F +44 (0) 20 7355 8801 E [email protected] W www.internosglobal.com

Internos Global Investors+ 44 207 355 8888
Jochen Schaefer-Suren[email protected]
Partner
Head of Hotel & Leisure[email protected]
Paul MunoGermany
Partner
Head of German Office

Notes to Editors:

Since its formation by Andrew Thornton and Jos Short in 2007, Internos has become a significant pan-European investment manager with offices in London, Frankfurt, Amsterdam, Paris and Luxembourg, 75 employees, over 300 commercial property investments in eight countries, €1.8 billion under management and its earliest funds dating from 2004, Internos has expertise across the real estate asset classes and major markets.

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