APAC: Global asset manager and investment firm Pro-invest Group has launched the Pro-invest Asia-Pacific Distressed Hospitality Fund for luxury, upper-upscale and upscale hotels in Asia, Australia and New Zealand.
Pro-invest is targeting to raise AUD$500 million from institutional investors, sovereign wealth funds and established family offices.
It will focus on acquiring hotels in markets with high barriers to entry and attractive supply and demand levels. Although the group usually focuses on mid-scale assets, the fund will also assess opportunities in the luxury, upper-upscale and upscale hotel segment. These properties typically benefit from above-average growth during market recovery.
Target locations include Australia, New Zealand, Singapore, Japan, South Korea and Thailand.
Pro-invest Group chairman and co-CEO, Ronald Barrott, said: “The strength of this offering is underpinned by the unique structure of the Pro-invest Group. Our integrated hospitality platform combines the opportunity for investors to tap into opportunities with our in-house team of experts in refurbishment/development, active asset management and day-to-day hotel operations to drive maximum return.”
Jan Smits, deputy chair and co-CEO, added: “Fifteen years in the Asia-Pacific region, most recently as CEO Asia, Middle East and Africa for IHG, gives us further insight into where opportunities in the current market will present themselves.”
Pro-invest is currently managing more than USD$2 billion in real estate assets, including commercial buildings as well as hotels under brands such as Hotel Indigo and voco.
Whilst the fund’s investment strategy is not reliant on distressed opportunities, acquisitions of this nature will be supported by debt to distressed borrowers in addition to equity investments.
“We are going through a period of significant economic and social disruption, but we remain confident that this is a temporary ‘bump in the road’ for the hospitality sector. In this time of operational difficulty, we see considerable repositioning potential – particularly for distressed assets in the full-service hotels segments – and Pro-invest is well positioned to optimise these opportunities,” said Pro-invest managing partner Dr Sabine Schaffer.