The fund manager Schroders has expanded to 425 million euros the investment raised for its pan-European hotel fund Schroder European Operating Hotels Fund. The fund, domiciled in Luxembourg, aims to attract 500 million euros of total capital, after having raised 300 million at the end of December last year. "Most of the capital to date has already been committed by some of the largest insurance companies in Europe," says the entity.
Schroder Real Estate Hotels is part of Schroder Real Estate, which in turn is part of Schroders' private asset business, a key strategic priority for the firm. This branch of the business includes private equity, infrastructure, microfinance and impact investing, securitized credit and insurance-linked securities, and has combined assets under management worth £ 44.2 billion as of December 31, 2019 (about € 49 billion).
The Schroder European Operating Hotels Fund I is a Luxembourgish Alternative Investment Fund, which is not available for sale in Spain.
Unlike other similar investment products, the fund takes advantage of the extensive experience of its managers in the acquisition and operation of hotels to acquire the property and operate it independently or under a franchise or hotel management agreement. "This allows Schroders to capture the majority of the benefit for investors in the fund," explains the manager.
"Although the leisure market and the hotel sector have been hit hard by the pandemic, we strongly believe that attractive opportunities will be created", it states Frederic de Brem, responsible for Schroder Real Estate Hotels. Its objective is "to create a diversified portfolio with great potential of high-quality hotels in the main business and leisure destinations of Western Europe".
"We are going through an unprecedented moment in the real estate market, in which, even the future prospects for the office sector have been challenged. That's why we are extremely pleased to have the backing of investors who trust Schroders' highly experienced team to take advantage of the opportunities that we hope will arise in the sector"says Robin hubbard, Head of Real Estate at Schroders.
"A sign of confidence in the team is that we have already been able to raise 85% of the target capital for the fund in the first round in just over six months, including the recent closures during the worst of the lockdown. We expect to carry out the final closure of the fund in the fourth quarter of 2020"Hubbard concludes.
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