NEWSiF Limited

October 03, 2011 06:57 ET

Pioneering Fund Launched 'Landmark Hotel & Ground Rent Fund'

LONDON, UNITED KINGDOM--(Marketwire - Oct. 3, 2011) - Luxembourg Fund Partners S.A today launched a new £100 million hotel development and ground rent fund. The fund will begin with the development of four sustainable hotels in London having already acquired the sites. These properties are contracted to IHG and Radisson on 20 year leases.

'LHGR Fund LFP Prime SICAV SIF' objective is to maximise returns and to achieve long-term capital growth for its investors by investing into a diversified portfolio of hotel developments, hotel freeholds and ground rents, with an initial short to mid-term focus on the London region.

The 'LHGRF' is an open ended SICAV SIF regulated by the laws of Luxembourg. This opportunity has brought together a first class team combining experts in fund management, hotel investments, acquisition and operations. Over the last 5 years the team has been responsible for the acquisition, development and management of real estate totaling more than £4bn.

The 'LHGRF' will introduce a mitigated risk investment approach integrating a number of pioneering enhancement features improving investor security as well as creating recurrent income and profits from ground rents. An important element is the focus on branded, standardised chain hotels.

"With uncertainty in traditional financial markets, the 'LHGRF' presents a transparent opportunity for investors to benefit from the continued growth seen within the hotel sector. In challenging times asset backed strategies with contracted income offer an attractive alternative for anxious investors"

Comments: Luc Leleux, Founder and Board Director, Luxembourg Fund Partners

City hotels show extraordinary resilience

The hotel and ground rent sector generates historically high yields and low volatility. It is projected to outperform substantially the conventional real estate asset classes over the next ten years.

Superior returns

The 'LHGRF' aim is to deliver a targeted total return of 15-18% IRR. The fund will be looking at investments to be made on the basis of a 5 - 7 year period. The 'LHGRF' is focusing its investment objective towards superior long-term risk-adjusted returns, receiving income via a wide range of experienced branded operators as tenants, freeholds and ground rents from individual units.

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