Redefine International acquires Earls Court Holiday Inn Express
Property company Redefine International has acquired a majority share in the Earls Court Holiday Inn.
Redefine used its 71%-held subsidiary to complete the acquisition of 60% of the issued shares in BNRI Earls Court from Camden Lock and Earls Court LLP for £8.7m.
BNRI owns the 150-bedroom Holiday Inn Express hotel, valued at £27m.
The hotel formed part of the Splendid Hotel portfolio comprising seven hotels that were originally co-owned by Bashir Nathoo, five of which were acquired by the group in December 2010.
Redefine International Hotels has been involved in the operational management of the Hotel since December 2010.
The deal comes before the planned large-scale redevelopment of the Earls Court and Olympia Exhibition Centre area
The hotel is partly funded by a debt facility of £12.5m from Aareal Bank AG for a term expiring in November 2015, at an all-in rate of 5.19%. The remaining 40% shareholding in BNRI is held by the seller, which is controlled by Bashir Nathoo.
Mike Watters of Redefine said: "During our recent £127.5m capital raise we stated that we had identified a strong pipeline of acquisition opportunities, and this transaction represents the first of these. The limited service hotel sector continues to thrive in pockets of London and, together with our in-depth knowledge of the performance of this particular hotel and our belief in the potential of this sector, we believe this transaction illustrates a compelling investment opportunity which will deliver a high quality income to our investors."
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By Neil Gerrard
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