European hostel chain Kabannas has completed its fourth acquisition in nine months amid continued expansion of its brand across Europe.
The company has acquired Hayweight House in Edinburgh from Scottish Action for Mental Health. The 20,368 sq ft building, which is located in the Old Town, currently serves as an office. It has a total rateable value of £347,300.
Kabannas plans to convert the workspace into a hybrid hotel, providing a mix of rooms across five floors. A change of use permit was secured for the property in July 2021.
The acquisition forms part of Kabannas’ strategy to bring its hospitality offering to 15 locations in Europe. The firm is targeting more than €100m (£84m) in acquisitions of hospitality or non-prime office properties, ranging in size from 21,500 sq ft to 107,000 sq ft, for repositioning. Acquisition values typically range between €10m to €50m, fully funded by Kabannas alongside its partner RoundShield, with no additional external financing.
Kabannas also acts as the developer and operator of newly acquired buildings.
Graham + Sibbald advised SAMH on the transaction. Kabannas and RoundShield were advised by Morton Fraser MacRoberts, Bellwether Green and Baker & McKenzie.
Image from EG Radius
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