Redevco, SFP launch €300m hotel JV

Redevco and Swiss Finance & Property Group (SFP Group) have formed an Iberian hotel Joint Venture.

Following a first close, a fund managed by SFP has indirectly taken a majority stake in Next Gen Stays, comprising a seed portfolio of six assets in Portugal and Spain in Lisbon, Porto, Bilbao, Malaga and Seville. The strategy is targeting a net-levered IRR of 15 percent-plus during a five-year period and aims to build up a portfolio of about €300 million ($326 million).

“Our value-add Next Gen Stays strategy is an excellent example of Redevco’s focus on repurposing assets to create vibrant places in urban locations,” said Hannah Evans, investment director at Redevco. “By acquiring and redeveloping strategically located and under-exploited real estate with local character, we create an attractive investment product and make cities more sustainable.”

The assets are leased to professional, tech-enabled hotel operators and redeveloped to create authent