Redefine International has bought a 60% share in the owner of a 150-bedroom Holiday Inn Express hotel in Earls Court, SW5.
Redefine Hotel Holdings, Redefine’s 71% held subsidiary, has completed the purchase of the shares of BNRI Earls Court from Bashir Nathoo’s Camden Lock and Earls Court LLP for £8.7m, reflecting a net initial yield of 7.5%.
The hotel, which had formed part of the Splendid Hotel Portfolio, comprising seven hotels that were originally owned by Bashir Nathoo, is valued at £27m.
Five of the seven hotels were bought by Redefine in December 2010.
IHG Hotels’ franchise agreement at the hotel runs until 2023.
The hotel is partly funded by a debt facility of £12.5m from Aareal Bank for a term expiring in November 2015, at an all-in rate of 5.19%.
The remaining 40% shareholding in BNRI is held by Camden Lock and Earls Court LLP.
The consideration of £8.7m for the 60% shareholding in BNRI plus acquisition costs of £400,000 were funded by RHH using part of the proceeds from the company’s recent capital raising, together with further co-investment, on a pro rata basis, by the existing co-investors in RHH.
Pinsent Masons advised.
jack.sidders@estatesgazette.com
