The independent license partner Engel & Völkers Asset Management has acquired the first properties for the new EV Leisure Hotel Fund 1: The founding portfolio consists of three luxury hotel properties of the 12.18. Group with a value of approximately 280 million euros. Both companies had announced the launch of the investment solution last October at Expo Real, after the sales approval for the German market had been granted by the Commission de Surveillance du Secteur Financier (CSSF).
This transaction is the largest deal in the German hotel real estate market in the last twelve months and also one of the ten largest sales processes in the European market within the last two years. "Especially today, the focus of 12.18. on the repositioning of tourism real estate in Europe offers attractive investment opportunities for institutional investors," commented Jörg Lindner, Managing Partner of the 12.18. Group.
The target value of the EV Leisure Hotel Fund 1 is 500 million euros. Interested investors can participate in the fund, which is structured as a Luxembourg RAIF, from 5 million euros upwards.
Due to the strong increase in economic development in tourism worldwide, the newly launched luxury hotel fund will reflect the enormously high potential of European luxury hotel properties.
Anton Tjoonk, Managing Director of Engel & Völkers Asset Management: "We are proud that we have now completed the contribution of the first properties. All hotels are located in unique, non-replicable locations and have been or will be extensively revitalised by our cooperation partner 12.18. to meet the highest demands - of both guests and investors".
A successful and growing portfolio
12.18. is a strategic partner for the fund and acts at the same time as developer and operator of these luxury hotels with its many years of international experience. The founding portfolio consists of three properties in popuar destinations in Spain, Italy and Scotland:
Opened in 2018, the luxury resort 7Pines Resort Ibiza is part of the exclusive "Destination by Hyatt" Collection. After revitalisation and repositioning, the all-suite resort with 185 luxurious suites has become one of the leading luxury lifestyle destinations in the Mediterranean, awarded with a prestigious Condé Nast Traveller Readers' Choice Award 2021.
On the unique island of Sardinia, the 7Pines Resort Sardinia is being built near Porto Cervo. The resort is ideally located in Baja Sardinia, surrounded by 15 hectares of untouched coastline and nature reserve. The property is currently undergoing extensive revitalisation. When it opens this summer, in addition to 76 individual rooms and suites, it will offer one main private beach as well as four secluded coves; a Pure Seven Spa; and three restaurants and three bars, including the Cone Club, an exclusive beach club. This resort in Sardinia will also be part of the "Destination by Hyatt" Collection.
SCHLOSS Roxburghe, located in the pristine rural Scottish Borders, is of similar luxury standard but with an entirely different character. Opened in 2019, the hotel within an 18th-century manor house was honored by the Sunday Times as the "best place to stay." An extension with a 600-square-foot spa area, modern meeting spaces and 58 rooms is currently under construction; the opening is scheduled for 2022. Set against the backdrop of the associated golf course, which is one of the finest in Scotland, an additional 62 cottages with up to 3 bedrooms are currently being built.
"The desire to travel is unbroken despite the pandemic. The fact that many people are longing for time out in a first-class vacation destination is also shown by our business figures for the past season: 12.18. was able to increase rates at all its properties and at the same time benefit from high occupancy rates. At 7Pines Resort Ibiza, for example, the rate increase was 21 percent. Therefore, we are convinced that the launch of the luxury hotel fund holds great potential," explains Jörg Lindner.
EV Leisure Hotel Fund 1: Seize opportunities
"We plan to build a diversified portfolio of high-end hotels and resorts focussing on popular tourist destinations in Europe. Therefore, further investments are planned, which will differ in terms of project volume, locations and their risk profile," says Anton Tjoonk.
Further properties in outstanding locations have already been identified for further growth of EV Leisure Hotel Fund 1. In addition to the hotels operated by 12.18. in the founding portfolio, further acquisitions are also to be made in cooperation with other renowned hotel operators in order to fully exploit the property-specific potential.
About Engel & Völkers Asset Management: EV Asset Management GmbH, license partner of Engel & Völkers Marken GmbH & Co. KG, is a bank-independent real estate investment and asset manager covering the entire real estate value chain from acquisition, valuation, financing and management to exit. The company is fully integrated into the global Engel & Völkers license partner network. It cooperates with various partner companies and thus has exclusive access to interesting real estate projects and local know-how. Together, they transform their deep understanding of real estate markets into investment opportunities for institutional investors - across Europe.
About the 12.18. Group: The 12.18. Group, with its headquarter in Düsseldorf, offers investment, development, asset management, hospitality management and sales from a single source. As an owner-managed company with more than 40 years of expertise of the founder Jörg Lindner, 12.18. specializes in high-yield properties with great development potential in the best locations in Germany, Europe and worldwide. The shares of the company are held equally by the Lindner family and the Versorgungswerk der Zahnärztekammer Berlin K. d. ö. R. . The 12.18. service spectrum ranges from acquisition and conception, financing and revitalization to operation, marketing and sales. Only something special and unique, so the company‘s philosophy "Differently. On principle.", can be successful in the long term. The company currently employs over a thousand people worldwide and manages an investment volume of 500 million euros.