Alta Capital Real Estate Announced a New Hospitality Portfolio
11/16/2020 HVS Asia Pacific Hospitality Newsletter – (Week Ending 13 November 2020)
The Hong Kong-based private equity company, Alta Capital Real Estate (“Alta Capital”), has announced its first hospitality fund, Alta Hospitality Fund Asia. The total value of the fund will be USD50 million and is expected to generate 15 to 25% internal rate of returns (“IRR”) over the six years period.
The fund has already started the fundraising process and target its first closing by January 2021 with the final closing in October 2021. Alta Capital will target family offices, private banks, and high net worth investors to invest into the fund. The fund has set the plan to invest in undervalued assets across Asia Pacific region including Thailand, Vietnam, Indonesia, Sri Lanka, Malaysia, South Korea, and Japan. The focus will be on boutique hotels, wellness retreats and villa communities with 50 to 150 keys. The firm plans to conduct repositioning, rebranding and redevelopment to deliver solid returns post-COVID.
As of this moment, Alta Capital has started to invest in two hotels, 90-key midscale boutique hotel in Bali and a prime hilltop greenfield development in Galle, Sri Lanka. The company targets unlevered IRR of more than 20% for the Bali asset and 25% for Sri Lankan asset.