Richard Balfour-Lynn’s MWB Group has agreed a sale-and-leaseback deal on three of its regional hotels to Legal & General Property.
L&G is under offer to buy Malmaison hotels in Birmingham, Manchester (pictured) and Newcastle for around £56m – a 6.5% yield.
The deal comes after German fund Deka lined up to buy the Malmaison hotel at Charterhouse Square, EC1, for £32m – 6% yield.
MWB is undergoing the sale-and-leaseback programme in an attempt to reduce its debt. It is in negotiations with its lenders, the Royal Bank of Scotland and Lloyds Banking Group, over the refinancing of £279m of debt secured against its Malmaison and Hotel du Vin businesses. The loans mature in December.
King Sturge acts for L&G Property; Savills is advising MWB.
annabel.dixon@estatesgazette.com
To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.
