pphe hotel group ltd said thursday it was in discussions with a potential investor regarding the launch of a new european hospitality real estate fund of up to 250 million euros 2668 million the londonlisted netherlandsbased hospitality realestate group said the fund would allow it to boost its strategy in regards to identifying acquiring and developing hotel assets across key european markets the company said it intends to participate in the fund for up to eur50 million in cash andor assets with the investor participating for up to eur75 million and the initial contribution from its existing asset in rome pphe said it expects additional investors will be able to participate in the remaining eur125 million equity following receipt of regulatory approval the fund would enable us to accelerate our ability to capture the attractive opportunities we see in front of us via the use of nondilutive thirdparty capital this would also provide a compelling financial return profile for all fund investors including pphe helping to further drive our future growth and enhance returns for our own shareholders chief executive boris ivesha said shares at 0929 gmt were up 30 pence or 27 at 1150 pence