Invesco Real Estate has raised EUR 85 mln of equity from four institutional investors in the first close of its second pan-European hotel fund. IRE said the addition of 'conservative debt' provides EUR 170 mln of initial capital. Further closings are planned over the next 12 months.

The fund is designed to build on IRE's first pan-European hotel fund, which closed in November 2006 with EUR 350 mln of equity. That fund reached full investment in December 2010 with a pan-European, multi-brand portfolio of 17 modern, mid-market hotels across nine countries with a gross asset value of about EUR 700 mln.