Clal Insurance has agreed to participate as a cornerstone investor in PPHE Hotel Group’s new €250 million ($267 million) European Hospitality Real Estate Fund.
On March 2, PPHE reported it was in advanced talks with a potential cornerstone investor, but did not identify the organization. PPHE, which will hold a 51 percent participation in the fund, plans to launch the vehicle with up to €50 million ($53 million) in cash and/or assets, and Clal has committed to invest up to €75 million ($80 million), with a 49 percent participation in the fund. PPHE said this builds on its existing successful partnership with Clal in relation to two key London assets.
Additional investors also will have the option to participate for the remaining €125 million ($134 million) equity, following the receipt of regulatory approval.
The fund will ena
