Media

Stay updated with Principal Real Estate Europe’s news and views.

Press Releases 2020

Acquisition of the Cour des Loges Hotel in Lyon for the Principal Hotel Real Estate Fund II for € 24.5 million

NEWS, 2020

PRINCIPAL REAL ESTATE EUROPE “ PRINCIPAL”, is delighted to confirm the closing of the acquisition of the Cour des Loges Hotel in Lyon for € 24.50 million on behalf of the Principal Hotel Real Estate Fund II ( “Hotelfund II” ) from a local real estate investor group. The 5* hotel is located in the heart of the old town of Lyon, a UNESCO World Heritage listed district. The Cour des Loges has 60 rooms, two restaurants, a bar, a spa, several meeting rooms as well as a hidden garden. As part of the transaction and its value-add strategy, PRINCIPAL entered into a long-term lease with the Radisson Hotel Group (“Radisson”), and in cooperation with Radisson will renovate and reposition the hotel under the Radisson Collection brand.

 

Following the acquisition of the Ona Hotel Terra last month, this acquisition is another example of the value-add strategy of the Hotelfund II: acquiring high quality 3-5* hotels in strategic locations, in major cities across Europe with significant potential to increase value. This hotel was marketed as part of a wider portfolio, before being selected by PRINCIPAL as the asset most fitting for our strategy. The hotel’s exceptional location in the Vieux-Lyon, the historical building with its renaissance elements as well as the well-established Michelin star restaurant, “The Loges”, together with the renovation and agreement with Radisson provide the key components for this value creation. After the successful closing, Radisson and PRINCIPAL will work closely together to renovate the hotel creating a unique experience and destination for business and leisure travellers alike, while carefully preserving the character and history of the building.

After the successful sale of the hotel portfolio in the Principal Hotel Immobilien Spezialfonds (“Hotelfund I”), which as reported significantly exceeded target returns, this is a significant step by PRINCIPAL on the acquisition front. Indeed, this is the third hotel PRINCIPAL has acquired on behalf of Hotelfund II and follows the signing of significant additional equity for Hotelfund II, providing it with the capacity to again invest up to €500 million in European high-quality real estate assets.

Jochen Schaefer-Suren, CEO of Principal’s Hotel and Leisure division, commented: “The Cour des Loges in Lyon is a unique hotel and a great acquisition for our Hotelfund II and we are thankful to our operating partner Radisson, one of the leading international hotel groups with a very strong covenant,  with whom we were able to sign a long-term lease agreement. The location, paired with the quality of the asset and the potential of the planned renovation and repositioning, are exactly the kind of value-add hotel investments PRINCIPAL is looking for. As a result, we are still looking for further hotel investments for Hotelfund II in 2020 and beyond.”

Principal contact for further information:

  Jochen Schaefer-Suren

Principal Real Estate Europe
+44 207 355 8800

schaefer-suren.jochen@www.principalreeurope.com

Principal contact for further information:

James Verstringhe

Tavistock
T +44 (0)20 79203150

james.verstringhe@tavistock.co.uk

Notes for editors:

Principal Hotel Real Estate Fund II

The Principal Hotel Fund II is structured as a Luxemburg SCS and provides investors with the opportunity to participate in value-add opportunities at a point in the cycle where many hotels with long-term fixed rent leases are fully valued yet rental growth is an essential driver to protect capital values. To achieve such rental growth the fund’s strategy focuses in select hotel markets on value creative asset management initiatives at the individual hotel asset, which can be achieved in any general market context. However, this requires a very experienced specialist hotel real estate fund management team like Principal’s hotel team to design and implement such an asset specific value-add strategy.

Principal Real Estate Europe

 Principal Real Estate Europe is part of Principal Global Investors’ dedicated real estate business, Principal Real Estate Investors, which manages or sub-advises $86.4 billion in real estate assets globally (as of December 31, 2019).

The group’s real estate capabilities cover all four quadrants encompassing public and private, equity and debt investment solutions.

In Europe, Principal Real Estate Europe operates from offices in London, Frankfurt, Amsterdam, Paris, Lisbon, Luxembourg, Madrid and Milan, employing more than 100 staff who manage real estate across all asset classes in nine different countries.

Principal Global Investors

Principal Global Investors®, a diversified asset management organization and a member of the Principal Financial Group®, leads global asset management at Principal®. As a multi-boutique firm, we bring a focused perspective and offer expertise across a host of asset classes.

At our core, we are driven by our purpose to help investors and businesses achieve their financial goals. Our global investment professionals deliver investment solutions for public and private pension funds, foundations and endowments, central banks, insurance companies, sub-advisory arrangements, sovereign wealth funds and individual portfolios.

Principal Global Investors manages approximately $476.4 billion in assets on behalf of clients located in over 80 countries, reflecting our worldwide market reach and experience and our commitment to high-quality research and service (as of December 31, 2019).

To find out more, visit us at principalglobal.com.

This website, the distribution of information on it and the offer or placement of interests in any fund managed by Principal Real Estate Limited (“Principal Real Estate”) or any of its affiliates (a “Fund”) may be restricted by law or regulation in certain jurisdictions. This website and the information on it is only directed at persons, and interests in any Fund will only be available for investment, to the extent that it is lawful under all applicable law and regulation to do so in any relevant jurisdiction. This website and the information on it are not addressed to any person resident in any jurisdiction where such distribution would be contrary to local law or regulation. Accordingly, visitors to this website should inform themselves about, and observe, local laws in their own jurisdiction which may restrict their ability to engage the services of Principal Real Estate or any of its affiliates, or to invest in any Fund.

In particular for investors in the European Economic Area (“EEA”), this website and the information on it is only directed at persons who are professional investors for the purposes of the Alternative Investment Fund Managers Directive (2011/61/EU) (“AIFMD”), professional clients or eligible counterparties for the purposes of the Markets in Financial Instruments Directive (Directive 2014/65/EU) (“MiFID II”) or as otherwise defined under applicable local law and regulation and at whom this website and the information on it may lawfully be directed in any relevant jurisdiction (“Eligible Persons”). In relation to each member state of the EEA (“Member State”) which has implemented AIFMD (and for which transitional arrangements are not/ no longer available), this website may only be accessed and interests in Funds may only be offered or placed in a Member State to the extent that: (i) the relevant Fund is permitted to be marketed to professional investors in the relevant Member State in accordance with AIFMD (as implemented into the local law/regulation of the relevant Member State); or (ii) this website and its information may otherwise be lawfully distributed and the interests in Funds may otherwise be lawfully offered or placed in that Member State (including at the initiative of the investor). In relation to each Member State of the EEA which, at the date of accessing this website, has not implemented AIFMD, this information may only be distributed and interests in Funds may only be offered or placed to the extent that this information may be lawfully distributed and the interests in Funds may lawfully be offered or placed in that Member State (including at the initiative of the investor).

In addition in the United Kingdom, this website and the information on it is intended only for, and is directed only at, persons who both (i) are capable of being treated by Principal Real Estate as professional clients or eligible counterparties, as each term is defined in the rules of the FCA, and (ii) fall within an exemption from Section 21 (or, in relation to communications by Principal Real Estate concerning collective investment schemes, Section 238) of the Financial Services and Markets Act 2000 (“FSMA”) in accordance with (a) Article 19 of the FSMA (Financial Promotion) Order 2005 (“FPO”) or Article 14 FSMA 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001 (“CIS Order”), being investment professionals having experience in relation to investments including unregulated funds, (b) Article 49 FPO or Article 22 CIS Order, being certain high net worth companies, trusts and unincorporated associations etc., or (c) being any other class(es) of person in or outside the United Kingdom to whom this website and its contents may otherwise lawfully be communicated. This website and the information on it and the opportunity to invest in the Funds is only available to such persons in the United Kingdom and this website and the information therein must not be relied or acted upon by any other persons. This website is not directed at or intended for U.S. persons and by accessing this website you represent to Principal Real Estate and its affiliates that you are not a U.S. person as defined in Regulation S under the United States Securities Act of 1933, as amended and are not acting on behalf of a U.S. person, nor purchasing with a view to re-sale in the US or to or for the account or benefit of a U.S. person.

Persons who are not Eligible Persons, including but not limited to those individuals or other persons who fall within the FCA’s definition of ‘retail clients’, should not use or rely upon this website or the information contained therein and may not engage the services of Principal Real Estate or any of its affiliates, or invest in any Fund. Potential investors are advised that all or most of the protections provided by the UK regulatory system will not apply and that the UK Financial Services Compensation Scheme may not be available in relation to an investment in a Fund or separate account.

When using this website and clicking accept below, you agree you will comply with all applicable local, national and international laws and regulations, including but not limited to those laws and regulations relating to data privacy, international communications and exportation of technical or personal data. In certain jurisdictions it may be illegal to access, view or download the information contained on the website and Principal Real Estate and its affiliates hereby disclaim all responsibility and liability if you access or download any information from this website which is in breach of any law or regulation of the jurisdiction in which you are a citizen, resident or domiciled.

This website and the information contained therein is not intended to provide the basis of any investment decision relating to Funds, products or services and any potential investor accessing this website should not solely rely on this website in evaluating the virtues of investing in any investments in such Funds, products or services referred to on this website. Any decision by a person to purchase interests in Funds, products or services must only be made following such person having thoroughly read all of the related materials to such investment including the relevant prospectus or offering memorandum for the relevant Fund and any supplements or appendices thereto, which must be received and reviewed prior to a person making any such investment decision. The relevant prospectus or offering memorandum for the relevant Fund may contain different information to the information and opinions contained on this website at any point in time. Any person purchasing an interest in a Fund, product or service referred to on this website must be able to bear the risks involved and must satisfy the relevant suitability requirements relating to such purchase of an interest in a Fund, product or service. Furthermore, some or all investment programs included on the website may not be suitable for certain investors.
The contents of this website have not been verified or approved by any competent regulatory or supervisory authority. No liability, whether in negligence or otherwise, arising directly or indirectly from the use of the information or any part of it on this website is accepted and no representation, warranty or undertaking, whether express or implied, is or will be made at any time by Principal Real Estate or its affiliates or any of their respective advisers, directors, officers, employees, representatives or other agents (“Principal Agents”) for any information or any of the opinions contained herein or for any errors, omissions or misstatements. None of Principal Real Estate or its affiliates or any Principal Agents makes or has been authorised to make any representation or warranties, whether express or implied, in relation to Principal Real Estate or regarding the truth, accuracy or completeness of any of the information contained on this website at any time. No representation or warranty is given by Principal Real Estate, its affiliates or the Principal Agents as to the achievement or reasonableness of, and no reliance should be placed on any projections, targets, estimates or forecasts contained in the information on this website. Furthermore nothing contained on this website is or should be relied on as a promise or representation as to the future. No reliance may be placed by any person for any purpose whatsoever on the information or opinions contained on this website or on its completeness, accuracy or fairness at any time.

Before accessing this website please confirm that you have understood and agree to the above and that you understand yourself to be, or be representing, an Eligible Person.