Printer Friendly

PPHE Hotel Group Closes Sale, Leaseback Deal for Park Plaza London Waterloo.

M2 EQUITYBITES-July 20, 2017-PPHE Hotel Group Closes Sale, Leaseback Deal for Park Plaza London Waterloo

(C)2017 M2 COMMUNICATIONS http://www.m2.com

20 July 2017 - A subsidiary of Guernsey-based hotel company PPHE Hotel Group Ltd (LSE: PPH) has closed the sale and leaseback of Park Plaza London Waterloo, the company said.

This deal was announced in June.

PPHE said that a unit trust created on behalf of several clients of CBRE Global Investors is purchasing the Hotel for GBP 161.5m (USD 209.33m) subject to a sale and 199 year leaseback.

The initial rent of GBP 5.6m per annum will have annual inflation adjustments subject to a cap and a collar.

CBRE Global Investors carried out an independent valuation of the Hotel giving an aggregate value of GBP 250m (approximately GBP 500k per key).

The sale and leaseback enables the group to release 65% of that value whilst retaining a long term lease, control of the operations and associated profits of the Hotel thereby keeping the remaining 35% within the group.

As at 31 May 2017, the Hotel had a book value of approximately GBP 124m.

The transaction, which is subject to certain conditions precedent commensurate with the sale and leaseback being fulfilled, is expected to complete in July 2017.

((Comments on this story may be sent to info@m2.com))

COPYRIGHT 2017 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2017 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:M2 EquityBites (EQB)
Date:Jul 20, 2017
Words:224
Previous Article:WPP's Grey Acquires French Digital Agency Sensio.
Next Article:ConvaTec to Acquire US Medical Supplies Distributor Woodbury Holdings for USD 120.5m.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters