December 1, 2023

Former Pro-invest senior execs launch Asia-Pacific private equity firm

” The current market cycle presents massive opportunities to obtain underperforming assets, carry out value improving property management methods, and take benefit of a post-COVID travel healing in among the worlds most dynamic areas..

Kasselis stated the company, which has already developed an existence in Singapore, will focus on hotels in the luxury, upper-upscale and upscale sectors, in gateway cities and resort places in markets throughout the region..

Luke Sullivan, Phil Kasselis and Ed Faraguna.

The trio were most just recently in leading roles at Pro-invest Group– Kasselis was a co-founder and Managing Director of Pro-invest Hotels, Sullivan the Managing Director of Pro-invest Hospitality Asset Management and Faraguna the Group Chief Financial Officer– and will use their substantial duration working in senior functions in leading Asia-Pacific hotel investment platforms to uncover chances across the region.

” Preqins June 2021 report on alternative properties highlighted that from completion of December 2018 to the end of September 2020, dry powder for Asia-Pacific realty grew by 39%.


” This points towards continued capital inflows to the Asia-Pacific property sector and pressure on prices. As travel recuperates, we anticipate capital worths in the hotel realty subsector will gain from increased capital streams to the area..

” An increasing consumer choice to invest their non reusable earnings on experiences instead of things is expected to lead to strong bottled-up demand for travel and hotel accommodation, with Asia-Pacific locations slated to be a significant recipient..

” Launching a personal equity realty platform entirely committed to purchasing hospitality assets is a natural development for the 3 of us.

” We see the time as being ripe to develop a agile and vibrant company such as H-PEP to allow financiers to take advantage of once-in-a-generation scenarios and build worth in the hotel sector,” he stated.

” We are already seeing strong financier hunger in the hotel sector with popular financial investment groups such as GIC, Blackstone, Partners Group and KSL Capital Partners active in Asia-Pacific..

” Our experience with leading fund supervisors including Pro-invest Group, Ascendas (now CapitaLand), Colonial First State and Mirvac Group has offered us a tested track record in hospitality operations, investment management and property management..

Kasselis stated the COVID-19 pandemic has sped up consumer patterns in the tourism sector with astute financiers anticipated to gain from choose hotel assets increasing their market share post pandemic..

Three previous Pro-invest Group executives, Phil Kasselis, Luke Sullivan and Ed Faraguna, have teamed-up to launch Hospitality Private Equity Partners (H-PEP), a new company targeting acquisition opportunities throughout the region.

” Cushman Wakefield determined in April 2021 that there was $5.4 trillion in excess cost savings worldwide (6% of 2019 worldwide GDP)..

Kasselis said they give the sector significant knowledge in funds management, hotel offer origination, active asset management, development, operations, debt and structuring and the firm would offer its financiers access to hotel investment chances through a fund structure, separately managed accounts, or direct financial investment.

” There is no doubt that COVID-19 has actually adversely impacted the performance of numerous hotels and resorts situated throughout Asia Pacific,” he stated..

He said H-PEP remains in conversations with investors regarding raising US$ 500 million for Asia-Pacific hospitality opportunities and the company has been established to make the most of the current market cycle in Asia-Pacific, targeting hotel financial investment chances “with the capacity for including value through refurbishments, rebranding and revitalisation to optimise performance in the most competitive market environment in years”.