Azora, the Madrid-based European private equity real estate manager, announces that it has completed the final close of its latest pan-European hospitality fund, Azora European Hotel & Lodging, F.C.R. (“Azora EH&L” or the “Fund”) reaching €815 million in total commitments plus additional co-investment capital, implying a 36% increase over the original €600 million target.
Based on strong demand from institutional investors, Azora raised the Fund’s €750 million hard cap to €815 million. The increase of the hard cap has allowed Azora to accommodate new investors, comprising a large European pension fund, two large insurance companies (based in Europe and the U.S. respectively) and two European family offices.
Taking financial leverage into account, this provides the Fund with an implied total investment capacity of more than €1.8 billion, of which c. €730 million has already been committed, through 4 transactions (including the seed portfolio). These include two flagship hotels in the Algarve region in Portugal for €148 million, through a 20-year sale and management transaction with Minor International (MINT); the acquisition of the Arenas Resort Giverola in Costa Brava (Spain), prior to a €40 million repositioning project; and the luxury 5* Vilalara Thalassa Resort hotel in the Algarve region. These new acquisitions bring the fund’s total portfolio to 4,600 keys in tourism-focused hotels, in both sun and beach and urban locations.
The Fund invests in European tourism, a segment with a long-term growth trend and amidst a clear post-pandemic recovery scenario. The Fund aims to invest both in traditional beach and mountain destinations, as well as in the main European tourist cities.
Source : Company