Pro-invest Group Launches Distressed Asset Fund to Capitalise Opportunities from Travel Recovery

Australia-based asset management and investment firm, Pro-invest Group (“Pro-invest”), has launched the Pro-invest Asia-Pacific Distressed Hospitality Fund (“Fund III”). Pro-invest aims to raise AUD500 million from institutional investors, sovereign wealth funds and family offices to invest in luxury, upper-upscale and upscale full-service hotels. In doing so, they hope to prop up the sector and provide operating capital as it rebuilds from the pandemic, especially after international borders reopen. The group believes that unprecedented market conditions created by the pandemic have created an opportunity to make value-added investments in these income-producing high-end assets. Outside of Australia and New Zealand assets, Fund III will seek Asian opportunities in Singapore, Japan, South Korea and Thailand. These higher-end assets experience higher revenue declines during market downturns, but will typically enjoy higher growth rates during market recoveries. Fund III will focus on acquiring hotels in markets with high barriers to entry and attractive supply-demand fundamentals. The group sees that there is the possibility to acquire assets below replacement cost, providing further upside for investors. Currently, Pro-invest is managing more than USD2 billion in real estate assets, including commercial assets as well as hotels operating under well-known brands like Holiday Inn Express, Hotel Indigo and voco.