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PPHE Hotel Group has agreed to repurchase the freehold interest in Park Plaza London Waterloo.
In June 2017, following the group’s development and opening of the 494-room Park Plaza London Waterloo hotel, PPHE sold its interest in the hotel for £161.5m and entered into a 199-year lease.
This was subject to an initial annual rent of £5.6m with future inflation adjustments, with the annual rental obligation currently standing at £7.3m.
The freehold acquisition is for a total consideration of £147.9m, of which £136.5m is intended to be funded by a new debt facility which PPHE expects to finalise prior to completion.
The debt will be secured on the freehold and long leasehold interest in the property, with the remaining balance to be settled from the group’s existing cash resources.
The deal is expected to close in the coming months.
Greg Hegarty, co-CEO of PPHE, said: “This transaction is another excellent illustration of PPHE’s approach to capital allocation and capital recycling. We continuously assess and examine opportunities across the portfolio to help drive returns.
“At the time, the initial sale and leaseback represented an attractive opportunity to release capital from this asset to reinvest in our broader development pipeline. Similarly, the purchase of this freehold interest is a good use of capital, protecting the group from future rental uplifts, whilst increasing the freehold exposure in our portfolio. As freehold owner, we will have increased strategic optionality on refurbishment and development, as well as benefiting from potentially better financing terms and full asset value capture.”
PPHE Hotel Group has agreed to repurchase the freehold interest in Park Plaza London Waterloo.
In June 2017, following the group’s development and opening of the 494-room Park Plaza London Waterloo hotel, PPHE sold its interest in the hotel for £161.5m and entered into a 199-year lease.
This was subject to an initial annual rent of £5.6m with future inflation adjustments, with the annual rental obligation currently standing at £7.3m.
The freehold acquisition is for a total consideration of £147.9m, of which £136.5m is intended to be funded by a new debt facility which PPHE expects to finalise prior to completion.
The debt will be secured on the freehold and long leasehold interest in the property, with the remaining balance to be settled from the group’s existing cash resources.
The deal is expected to close in the coming months.
Greg Hegarty, co-CEO of PPHE, said: “This transaction is another excellent illustration of PPHE’s approach to capital allocation and capital recycling. We continuously assess and examine opportunities across the portfolio to help drive returns.
“At the time, the initial sale and leaseback represented an attractive opportunity to release capital from this asset to reinvest in our broader development pipeline. Similarly, the purchase of this freehold interest is a good use of capital, protecting the group from future rental uplifts, whilst increasing the freehold exposure in our portfolio. As freehold owner, we will have increased strategic optionality on refurbishment and development, as well as benefiting from potentially better financing terms and full asset value capture.”
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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