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Eurazeo, a global investment group, and the Public Sector Pension Investment Board (PSP Investments), has announced the establishment of a strategic partnership that will focus on investing in hotels across Europe.
It will initially focus on targeting large assets or portfolios “well-positioned” to benefit from the sector’s recovery.
As a first step in this new partnership, the partners said they plan to invest up to £253m of equity in hotel assets or portfolios across Europe, which offer significant potential to unlock value through upgrades and targeted asset management initiatives.
Eurazeo and PSP Investments will invest equal amounts in the joint venture, which is set to benefit from Eurazeo’s “well-established” track record in the sector, the recognized execution capability of both firms and their commitment to sustainable growth.
In line with all future investments of the partnership, the firms also said an “ambitious” refurbishment programme will be carried out with a strong sustainability component, focused on monitoring and reducing water consumption, energy usage, and carbon emissions to support climate action.
Renaud Haberkorn, managing partner of real assets at Eurazeo, said: “Since establishing our real estate division in 2015, Eurazeo has invested almost £759m of equity from its balance sheet in real estate opportunities targeting properties and companies with underlying real estate assets across Europe.
“Exits to date have delivered strong performance and, with our proven track record, we are now looking to invite like-minded third-party partners to invest alongside us in a pan-European opportunistic real estate investment program. We are thrilled to welcome PSP Investments as our first partner in a dedicated hospitality partnership, as part of this programme.”
Stéphane Jalbert, managing director, head of Asia-Pacific and Europe, Real Estate Investments, PSP Investments, added: “We anticipate the hospitality sector in Europe will present an attractive recovery play as travel resumes and, together with Eurazeo, are working to capitalise on this opportunity.”
