The historic Raleigh Hotel property in Miami was purchased today by a joint venture between Deutsche Finance America, Bilgili Holding and SHVO. The partnership purchased the property for $103 million from Tommy Hilfiger and Turkish conglomerate Dogus Group, which had owned the Raleigh since 2014. The 83-room hotel is an icon of South Beach art deco, known especially for its ornate beachside swimming pool, which LIFE Magazine called “the most beautiful pool in America” in 1947.
The new joint venture purchased the property in an all cash transaction in partnership with a number of Germany’s largest institutions including Bayerische Versorgungskammer (“BVK”), Germany’s largest manager of public pension schemes.
The acquisition of the Raleigh Hotel marks the second joint investment between New York City based development firm SHVO, Turkish investment group Bilgili Holding and investment management firm Deutsche Finance after acquiring 685 5th Avenue six months ago.
“We are thrilled about the next chapter of the Raleigh’s history – as a nostalgic icon and a symbol of twenty-first century style and luxury,” said Michael Shvo, Chairman and Founder of SHVO. “Over the past 4 years, Tommy Hilfiger and the Raleigh Group have put incredible effort into restoring this iconic Art Deco gem and we are grateful that they are entrusting us as stewards of the Raleigh’s future. We are committed to bringing about its next renaissance.”
Jason Lucas, Managing Partner of Deutsche Finance America, commented, “The Raleigh Hotel is an embodiment of Miami’s timeless South Beach and we believe this investment offers our LPs outsized risk-adjusted returns in a liquid, gateway market.”
“We are very excited to further solidify our partnership with Deutsche Finance and SHVO on our second deal in the U.S. We are still looking forward to diversifying and growing our portfolio further in other global hubs, especially in Los Angeles and New York City,” said Serdar Bilgili, Chairman of Bilgili Holding.
SHVO brings an atelier-like experience to real estate development, fueled by a discerning eye for design excellence and a passion for quality in every detail. With more than $4 billion under development, SHVO is dedicated to creating extreme value by bringing innovative concepts to life in premier locations for exclusive clientele. Founded in 2004, SHVO has been involved in the envisioning, planning, sales and marketing of more than $15 billion of prime real estate, spanning more than 80 million square feet. SHVO projects have pioneered innovations that continue to be emulated and set new standards throughout the world. Based on New York City, SHVO was founded in 2004 by Michael Shvo, who remains its Chairman and CEO.
Additional information can be found at www.shvo.com.
About Bilgili Holding
Bilgili Holding is a leading real estate focused Turkish conglomerate and BLG Capital is its independently managed private equity real estate arm founded in 2011. BLG Capital raised and invested more than $500 million of equity in Turkey since 2011, and the two firms have over $2 billion of combined assets under management. The firms have a long track record in real estate investments in different asset classes such as hospitality, student housing, city-center mixed use projects, office, high end residential and other commercial properties. Backed by its institutional investor base, the companies aim to integrate new and unique concepts into the markets they operate in and also execute strategic partnerships with leading global brands such as Marriott, Soho House, The Peninsula, Aman Resorts and Dogus Group. The investment portfolio includes W Istanbul Hotel, Soho House Istanbul, Galataport, The Peninsula Istanbul, and Aman Bodrum among other high end residential and student housing projects.
Additional information can be found at www.bilgiliholding.com and www.blgcapital.com.
About Deutsche Finance
Deutsche Finance Group (“DFG”) is a global real estate investment management firm established in 2005 and headquartered in Munich with offices in London, Denver, Zurich, and Luxemburg. DFG has €2 billion of assets under management. Deutsche Finance America (“DFA”) is a subsidiary company established in 2018 to source, structure and asset manage direct real estate investments in the United States on behalf of DFG’s institutional client accounts and managed funds. DFA has successfully committed in excess of $300 million of equity across four investments in its first year of operations.
Additional information can be found at www.dfamerica.com.