Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

LONDON-The Avingstone Fund, a new London-based vehicle, is to focus on the luxury end of the pan-European hotel market as a 'club' fund. It has so far assembled €310 million of equity commitments and is aiming at €500 million in total.

Hotel real estate dealmakers behind Avingstone are Founder and Chairman David Mongeau and Piers Talalla, who have advised on around €19 billion in hotel deals through their private Avingstone Financial investment bank. A spokesman said that target assets for the fund, launched in September, are four- and five-star properties, with an acquisition or development horizon expected to be around two years, over a fund potential life of around seven years. Two entrepreneurial families have committed €300 million, and discussion are in train with several other institutions, mainly North American, and at least one sovereign wealth fund.

"We are still looking to talk to other people about commitments and there is quite some interest out there," a spokesman said. "The advantage is that we believe we are quite close to the bottom on the hotel market. The model is to attract quite serious players who have something to bring by way of experience. Those who contribute larger equity chunks and have this kind of know-how to offer will be welcome onto the investment committee."