Jochen Schaefer-Suren

Chief Executive Officer

Hotel and Leisure Division

Jochen Schaefer-Suren

Chief Executive Officer

Hotel and Leisure Division

Blog Post

INTERNOS completes acquisition of Hilton Danube, Vienna

August 2013

INTERNOS completes acquisition of Hilton Danube, Vienna

Seventh acquisition for the INTERNOS Hotel Real Estate Fund

INTERNOS Global Investors (INTERNOS), the pan European, owner-managed real estate fund manager with €2.1 billion of assets under management, announces the closing of the acquisition of the Hilton Danube in Vienna, Austria, from Immofinanz Group, with a total investment of close to €52 million on behalf of the INTERNOS Hotel Real Estate Fund. This acquisition represents the seventh hotel INTERNOS has acquired for the Fund in the last twelve months.

The property is an existing, high quality, 4* hotel comprising 367 rooms with a strong cash flow track record, well located in a strategic location in Vienna. It is operated under a long lease by the Hilton Group. The hotel’s profile and location in the capital of Austria – a core euro zone country and target investment region for the Fund – fits perfectly with the Fund’s investment strategy. This investment adds to the portfolio’s diversification with the addition of a further city, which is strong hotel market, and the Hilton brand, a new brand in the Fund’s portfolio.

The stable income of the now seven hotel strong portfolio, and the conservative debt of only 40% LTV, contribute to the Fund’s low risk profile while generating a very good distribution. This reflects INTERNOS’ strategy for institutional investors in today’s income oriented market. As a result of the attractive pricing of acquisitions to date and due to historically low interest rates achieved so far, the Fund was able in its first year to pay dividends of over 8% p.a. (above its 7.5% target) and is forecast to reach or exceed its IRR target of 11+% p.a.

The Fund is structured as a German ‘Spezialfonds’ operated by INTERNOS’ Kapital Anlage Gesellschaft (KAG). Based on additional equity raised from the seed investors and new investors after the second closing the Fund’s investment volume is forecast to reach ca. €400 million. The Fund is managed by Jochen Schäfer-Suren, Partner of INTERNOS and Head of INTERNOS’ Hotel

  • Leisure division, working together with Paul Muno, Partner and Head of Germany, and fellow Managing Director of the INTERNOS KAG.

Jochen Schäfer-Suren, commented: “This latest acquisition, together with continued historically low interest rates, secured against very attractive returns and enhanced diversification, further reduce the portfolio’s risk profile further and thus simultaneously enhanced the quality of the returns. Due to the continued support of our original seed investors, as well as new investors, we have been able to nearly triple the initial equity to a total of €210 million, which allows us to acquire up to a further €150 million of hotel acquisitions in the next 6 to 12 months.” Therefore we are actively looking for further hotel acquisitions in the remainder of 2013 and for 2014 .”

INTERNOS Global Investors KAG

Goetheplatz 4, 60311 Frankfurt, Germany

T +49 (0) 69 50 50 66 9 – 0 F +49 (0) 69 50 50 66 9 – 29 E [email protected] W www.internosglobal.com

Geschäftsführer: Paul Heinrich Muno, Jochen Schaefer-Suren • Amtsgericht: Frankfurt am Main HRB 74147

For further information, please contact:

INTERNOS Global Investors+ 44 207 355 8888
Jochen Schaefer-Suren[email protected]
PartnerINTERNOS London
Head of Hotel & Leisure
INTERNOS Frankfurt
Paul MunoDeutschland
Partner
Head of Germany
Jeremy Carey+44 207 920 3150
Tavistock Communications[email protected]
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, approaching 1,000 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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