Internos Global Investors, a pan-European real estate fund manager, has sold a hotel in the German city of Dresden to Singapore-listed Frasers Hospitality Trust for €58.4 mln.
Internos sold the Maritim Hotel Dresden on behalf of its Internos Hotel Real Estate Fund.
The property is an existing 4-star hotel with 328 rooms operated under a long term lease by the Maritim Group and acquired on behalf of the Hotel Fund for €49 mln in 2014.
Internos said that the sale benefitted from the current favourable market conditions and follows the successful implementation of a lease restructuring and extension.
With this sale, Internos will complete a successful disposal process that allowed to exceed IRR target returns of 11%. The Hotel Fund therefore has both distributed dividends of over 8% per annum every year since its first closing in 2012 and achieved above target total returns. The proceeds of the disposal shall be redeployed in new hotel real estate investments in the Eurozone.
'Due to its predominantly fixed rents, long leases and fixed low interest rate financing we believe that the fund with AUM of circa €440 mln will continue generating high income returns for the next few years,' said Jochen Schäfer-Surén, partner in charge of managing the Internos hotel and leisure division and the fund.
Internos' hotel and leisure division is pursuing new investment opportunities according to different investment strategies for its remaining capital of about €200 mln. 'We therefore continue to explore further hotel acquisitions along the risk spectrum, which highlights how institutional investors explore new avenues for alternative investments in the current very low interest rate context allowing us to cover the entire hotel real estate investment range across Europe as long as the risk return profile remains attractive,' Schäfer-Surén said.