LONDON, UK: PPHE Hotel Group has announced that it has received the necessary regulatory approvals for its newly launched European Hospitality Real Estate Fund.
The Fund allows the company to accelerate its strategy of identifying, acquiring, and developing hotel assets across key European markets. PPHE plans to participate in the Fund with an amount of up to €50 million in cash and/or assets.
Clal Insurance has committed to investing up to €75 million, and additional investors can participate for the remaining €125 million equity following the regulatory approvals. With full equity subscription and 50% bank leverage, the Fund’s investment potential will be approximately €500 million.
The hotel assets acquired by the Fund will be operated by PPHE’s hospitality operating platform. Boris Ivesha, the President and CEO of PPHE Hotel Group, said that the new Fund is one of the many ways the company is creating value for its shareholders.