Australia-based asset manager and investment firm Pro-invest Group has secured A$300 million (US$212.4 million) from a diverse group of institutional investors for its second Australian Hospitality Opportunity Fund (Fund II), according to an announcement.
Fund II is the successor of Fund I, Pro-invest’s debut Australia and New Zealand-focused private equity real estate fund.
Fund I facilitated the strategic roll-out of a portfolio of Holiday Inn Express hotels, one of the world’s largest and fastest-growing select service brands – across Australia and New Zealand via a Master Development Agreement with InterContinental Hotels Group (IHG).
Going forward, Fund II will also help with the expansion plans of Holiday Inn Express in Australia and New Zealand, thereby helping it tap into the upper mid-scale segment with voco – the newest lifestyle brand by IHG. It can also be deployed to reposition existing assets, targeting opportunities presented by the current market environment.
Fund II, which is partially backed by Clean Energy Finance Corporation, has already secured four strategic sites, which will see the development of close to 1,000 rooms in Auckland, Sydney and the Sunshine Coast under the Holiday Inn Express and voco brands. Its hotels are expected to commence operations in 2022.
The investment firm said that the two sites in Auckland have strengthened Pro-invest’s presence in New Zealand following the group’s entry with the opening of Holiday Inn Express & Suites Queenstown in July this year.
“We are seeing – and are well-positioned to capture – emerging opportunities across dislocated markets. In particular, we anticipate more distressed opportunities arising over the next 6 to 12 months,” said Ronald Barrott, CEO of Pro-invest Group. “As an integrated platform combining hotel investment, development and operational capabilities, we are uniquely placed to optimise these opportunities in existing, new and redevelopment assets and generate significant value for investors.”
Pro-invest Group is an asset manager and investment firm specialising in private equity real estate and real estate asset management with commitments totalling A$2 billion.
Established in 2010 by private equity real estate industry veterans, Pro-invest has grown to become one of the largest hotel investment platforms in Australasia in addition to executing on some successful commercial real estate transactions.