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 completion of the acquisition of its 4-hotel seed portfolio of the Internos Hotel Real Estate Fund for a total investment of over € 100 million

September 2012

Internos announces the completion of the acquisition of its 4-hotel seed portfolio of the Internos Hotel Real Estate Fund for a total investment of over € 100 million

Internos, the pan European, owner-managed real estate fund manager with €2.1 billion AUM, is pleased to announce the completion of the acquisition of its four hotel strong seed portfolio for the Internos Hotel Real Estate Fund for a total investment of over €100 million. The four hotels were bought from Accor SA, Lindner Hotels Group and the German property developer GBI.

Three of the four hotel acquisitions are 4* hotels (MGallery Amsterdam, MGallery Cologne, Lindner Congress Hotel, Frankfurt) and one 3* hotel (Park Inn Hotel Nuremberg). The hotels have long and stable trading record and are operated under long leases by Accor SA, Lindner Hotels and Rezidor. Internos, jointly with the tenants, will invest over €14m in the hotels, mainly in the public areas and guest rooms to enhance the guest experience thus increase operating results, rents and enhance capital value. The financing for the four hotels (40% leverage) has been provided by Bayern LB.

The hotels’ locations in major cities in Germany and the Netherlands – both part of the core euro zone – the stable income of the four hotels and portfolio diversification as well as conservative debt of only 40% LTV contribute to the investments’ low risk profile. This seed portfolio reflects well Internos’ strategy for institutional investors in today’s risk-averse market. The portfolio’s pricing and low interest rates lead to forecast dividend yields and IRRs of respectively 7.5+% p.a. net and 11+% p.a. net.

The Fund is structured as a German ‘Spezial Fonds’ operated by Internos’ Kapital Anlage Gesellschaft (KAG) and has a total target volume size of up to €300 million. The Fund will be managed by Jochen Schäfer-Suren, Partner and Managing Director of Internos’ Hotel & Leisure division as well as Paul Muno, Partner and Managing Director of the Internos KAG and Internos team in Germany.

Jochen Schäfer-Suren commented: “The completion of these four acquisitions with historical low interest rates secured very attractive returns and a good risk diversification from day one. The four-hotel seed portfolio represents our conservative investment strategy of acquiring only 3-4-star hotels in the core-euro zone under very long leases. Our investors are very pleased with the results to date. Their continued support and the interest of additional German investors allow us to raise further capital and schedule further hotel acquisitions in the next few months.”

Paul Muno mentioned: “With the launch of the first fund under the aegis of Internos Real Investors Kapitalanlagegesellschaft (KAG) we have passed a critical milestone in the German market. With our new KAG platform in place, we can respond individually to customer needs and provide customized

investment solutions. Further funds are being currently created which will cover various sectors and risk profiles.”

For further information, please contact:

Internos Real Investors+ 44 207 355 8888
Jochen Schaefer-Suren[email protected]
Geschäftsführer
Head of Hotel & Leisure
Paul MunoInternos Frankfurt
PartnerDeutschland
Geschäftsführer

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, €2.1 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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