The British asset manager is relying on the Algonquin team, acquired in 2018, to launch its new hotel property investment fund.
Fred de Brem will manage Schroders’ first hotel fund which will invest and directly manage hotel assets in Europe. After a first closing at 305 million euros, the fund is targeting 500 million at closing, which would give it around 800 million euros of investment capacity thanks to a leverage effect of 40%. Fred de Brem heads the team of Schroder Real Estate Hotels (ex-Algonquin), based in Paris, London and Brussels, is in charge of investments and management. The fund, closed with a life of 8 years, aims for a return of around 10% per year. It is targeting between 10 and 15 investments, two of which are already on track.
44-year-old Fred de Brem joined Schroders in 2018 following his acquisition of Algonquin, of which he was CEO since 2012. After a first entrepreneurial experience in software development and a year spent at SG Capital Europe where he was in charge of structured finance (LBO), he joined Algonquin, created in 1998, in 2003. There, he familiarized himself with the economic model of acquiring and managing hotel properties and businesses, first alone then by welcoming institutional investors during specific operations. Fred de Brem graduated from HEC Paris.
Schroders is one of the UK’s largest asset management companies with nearly € 500 billion in assets under management. The company opened its first office in France in 2001 and launched a full-fledged management company there in 2017. In Paris, the group specializes in two main areas of expertise: infrastructure financing with Schroder Aida and commercial and hotel real estate with Schroder Real Estate France, which absorbed the Algonquin teams after its acquisition. The group is present only in active management and has been developing its expertise in unlisted assets for several years.