INTERNOS Global Investors has closed on the acquisitions of the Maritim Hotel Dresden and the Mercure City Hotel Berlin acquisitions for EUR75 million.
The properties were bought in two separate transactions from Axa Investment Managers and ActivumSG respectively, on behalf of the INTERNOS Hotel Real Estate Fund I.
This takes the number of hotels acquired by the fund to 11 since its first closing in mid 2012.
Both hotels are operated under long term leases with Maritim and Accor and were acquired at attractive yields in line with the fund’s objectives.
Following these two acquisitions the fund reached a total AUM of EUR340 million. INTERNOS continues to actively pursue investment opportunities and estimates the fund’s total AUM to be around EUR450 million once fully invested. Given its portfolio’s continued growth and strong cash flow track record, along with solid long term leases and attractive funding conditions, the fund is set to continue to generate income returns in excess of 7.5 per cent dividend per annum for the coming years.
Jochen Schäfer-Suren, partner and head of INTERNOS’ hotel and leisure division, says: “We are pleased to continue to deploy the fund’s capital with this momentum while also delivering and exceeding the fund’s required returns. We are now well diversified in Europe and have covered the key markets in Germany. Jointly with the capital from our Value Add fund, we have additional investment capacity of up to EUR250 million for which we are pursuing secure income and value add opportunities.”