Brilla Group Launches First Private Equity Fund

Sep 7 2010 | 12:42pm ET

The Brilla Group, which focuses exclusively on investing in high-end beachfront hotels and resorts, recently launched its first private equity fund.

The $200 million vehicle will typically make $10 million to $30 million equity investments in luxury beachfront properties in markets including the Caribbean, South Florida, Mexico, Central America and Colombia.

"We tend to look at future loan to value scenarios of 50% of the purchase price, and we tend to joint venture with partners do this type of acquisition," said David Brillembourg, chief executive officer of the Miami-based Brilla Group, which he founded in 2007. "We could buy properties with a $120 million price tag if all those things played out."

Brillembourg added that the firm also focuses on buying properties that are below replacement cost, and that are in markets that have not been penetrated in the luxury space, such as Colombia and the other aforementioned locales.

And while the loose lending and overbuilding that pre-dated the financial crisis continues to affect all aspects of the real estate sector, Brillembourg said the Brilla Group is well positioned to benefit from dislocation in the marketplace.

"You will continue to see significant trouble in the market as properties need to restructure their capital stack from four components—people overpaying for properties, people overleveraging properties, people over building properties and people running out of time," he told FINalternatives. "Those four things are going to continue to create significant opportunities for investors in the space."

Last year, the Brilla Group spent $100 million investing in eight hotels. This year,  Brillembourg said he expects the new private equity fund to deploy a similar amount of capital, but in fewer hotels with bigger price tags.

"We have been buying bigger properties, so we will close the year having bought four," he said.

And where does Brillembourg himself go on vacation when he has the time? Two of his favorite getaways are The Raleigh Hotel in Miami Beach and the Hotel Isle de France in St. Barts—both of which are Brilla Group properties.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.