Nepalese Chaudhary Group's CG Hotels & Resorts is planning to double the size of its hospitality portfolio with the establishment of three funds totaling US$800 million, Livemint reported.
The publication cited executive director Rahul Chaudhary as saying that the three funds will focus on acquiring distressed properties in India, south Asia and Europe, with respective investments of about US$200 million, US$300 million and US$250 million. The director added that the funds will have a life cycle of five to seven years and the company will be general partner with its 20% equity contribution, with the remaining equity to be raised from institutional investors, private equity companies and wealth individuals.
CG Hotels has already tapped Singapore's SafeGuard Real Estate Management Pte. Ltd. to be its partner for its planned European-focused fund, which will make its investment primarily in Spain and Italy, the report noted.
A fourth fund is also on the company's plans, as it intends to further its expansion initiative in the Middle Eastern and African regions.
On the expansion front, Chaudhary Group Chairman Binod Chaudhary told the news outlet that the company wants to develop more hotel properties under the Taj Safari brand and focus its hospitality business on luxury and experience. The executive said the group is looking at hospitality to drive the company's growth, accounting for 20% of its revenue in the next five years.