Shaner and Five Arrows Realty Securities V, L.P. form Partnership, Shaner Growth Fund II, L.P., for Acquisition of Hotel Debt
STATE COLLEGE, Pa.-(Business Wire)-September 15, 2009 - Lance Shaner, Chairman and CEO of Pennsylvania-based Shaner Hotel Group, is pleased to announce the formation of Shaner Growth Fund II, L.P. (“the Fund”). The Fund will initially be capitalized with cash contributions made by Mr. Shaner and Five Arrows Realty Securities V, L.P. (“Five Arrows”) and will target the acquisition of first mortgage debt secured by hospitality assets. The Fund’s primary investment strategy is to acquire such debt at discount to par value and, generally, to hold it to maturity or earlier repayment.
The Fund will be the successor to an existing vehicle formed by Mr. Shaner, which, earlier this year was successful in acquiring $65 million in first mortgage notes secured by properties affiliated with such brands as Marriott, Hilton and Starwood. “Our first fund confirmed our ability to acquire debt on favorable terms. Shaner Growth Fund II, L.P. will allow us to acquire approximately $200 million of additional hotel debt over the next 18 months,” Mr. Shaner said.
In implementing its acquisition program, the Fund will utilize the resources of the Shaner Hotel Group (“SHG”), a fully integrated hotel management, investment, development and financial organization based in State College, Pennsylvania. SHG has strong industry expertise and, with over 2,000 employees, can bring to bear substantial resources to underwrite and close transactions quickly.
D. Pike Aloian, a partner of Rothschild Realty Managers which acts as advisor to Five Arrows, commented on the formation of the venture saying, “Five Arrows is pleased to extend its relationship with SHG through the formation of the Fund. We believe that it has the right combination of capital and expertise to be responsive to the marketplace in the months ahead.”
For a confidential discussion about selling a hotel mortgage to The Shaner Growth Fund II, L.P., email Plato Ghinos at pghinos@shanercorp.com or call (888) 861-0324.
About Five Arrows Realty Securities:
Five Arrows Realty Securities V, L.P. is the latest in a series of funds organized and managed by Rothschild Realty Managers, a New York-based investment advisory firm. The Five Arrows Realty Securities funds, which are capitalized by contributions from pension funds, endowments, foundations, and high net worth individuals, provide entity-level growth capital to public and private real estate operating companies. Since their inception in 1996, the funds have committed approximately $1.4 billion of capital into 21 entity-level investments.
About Shaner Hotel Group:
Shaner Hotel Group is part of the Shaner Companies, a privately-held entity based in State College, PA that owns and manages diverse investments in the lodging, investment, energy and professional service sectors. Shaner Hotel Group owns and manages 32 existing hotels throughout the United States and has several more in construction.
For the latest news from Shaner, visit us online at: www.ShanerCorp.com
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