Belmond Acquires Tuscan Resort Castello Di Casole in Italy for EUR 2.85m.
M2 EQUITYBITES-February 9, 2018-Belmond Acquires Tuscan Resort Castello Di Casole in Italy for EUR 2.85m
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9 February 2018 - Bermuda-based luxury travel company Belmond Ltd. (NYSE: BEL) has acquired Tuscany, Italy-based resort and estate Castello di Casole, the company said.
The company purchased from the current owner the entire equity capital of two entities that together own Castello di Casole, one of the largest private real estate properties in Tuscany.
Belmond said the purchase price, including transaction costs, is approximately EUR 39m (USD 48m) with a possible further EUR 2.85m (USD3.5 m) payable contingent upon certain real estate sales being realized.
The property is the latest addition to Belmond's family of 'Italian Icons', which includes Belmond Hotel Cipriani in Venice and Belmond Hotel Splendido in Portofino.
Located within easy access of both Florence and Siena, the resort and estate span 1,500 hectares and comprise the 39-key Castello di Casole hotel, together with vineyards and olive groves, extensive wooded Tuscan countryside, and 48 residential plots, of which 16 remain for sale, with three subject to non-binding reservation letters of intent to purchase.
The acquisition has been financed using cash on hand. Upon takeover of management, Belmond will rebrand the resort as Belmond Castello di Casole.
Starting in 2018, the company expects to invest EUR 7.3m (USD 9m) in a phased refurbishment of the hotel over four years, including the addition of two new villas on two residential plots that will be retained, bringing the resort's total key count to 41.
In addition, the company expects to sell the remaining 14 land plots, including the three that are subject to reservation letters, over the coming years, effectively reducing the company's net investment in the estate.
Belmond is a global portfolio of luxury travel experiences including hotels, trains, cruises and safaris in some of the world's most inspiring and enriching destinations.
Established over 40 years ago with the acquisition of Hotel Cipriani in Venice, the company owns and operates 47 unique and hotel, rail and river cruise experiences, including one scheduled for future opening, in many of the world's destinations.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Feb 9, 2018|
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