Commerz Real and Deutsche Hospitality launch hotel fund
Commerz Real has launched a Spezialfonds for European hotel properties in cooperation with the Steigenberger umbrella brand Deutsche Hospitality. A volume of €250mn is intended for the Commerz Real European Hotel Fund, to be invested in up to eight three-to-five-star establishments of the brands Steigenberger Hotels and Resorts, Jaz in the City, MAXX by Steigenberger, and Intercity Hotels. Steigenberger Hotels is getting on board with about €12mn, another €92mn are to be collected from professional and semi-professional investors. The vehicle launched via Luxembourg firm CR Fund Management is anticipated to bring at least 5.5 % IRR. The fund will be acquiring projects under construction or existing properties with remaining lease terms of about 18 months. For the latter, Steigenberger will sign long-term leases. The properties will be sold again after remaining in the portfolio for at least five years.
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