Avingstone's €500M Fund Targets Luxury Hotels

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.