The Caterer

PPHE announces sale and leaseback of Park Plaza London Waterloo releasing £161.5m

29 June 2017 by
PPHE announces sale and leaseback of Park Plaza London Waterloo releasing £161.5m

PPHE Hotel Group Limited has exchanged contracts on a deal to sell and leaseback Park Plaza London Waterloo for £161.5m.

A unit trust created on behalf of clients of CBRE Global Investors is buying the hotel subject to a sale and 199-year leaseback with an initial rent of £5.6m a year.

According to PPHE, the deal enables the group to release 65% of the value of the hotel while retaining the long term lease. After transaction costs and the repayment of an existing facility PPHE expects to have £80m available to grow its portfolio.

PPHE president and chief executive Boris Ivesha said: "This sale and leaseback will unlock the capital invested in Park Plaza London Waterloo whilst allowing us to continue to benefit from the operation and associated profits. This transaction is in line with our strategy to realise shareholder value."

PPHE reports like-for-like revenue increase in end of year results >>

London hotels drive PPHE like-for-like sales up 17% >>

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