MWB Group Holdings has completed the sale and leaseback of five Malmaison hotels for a combined total of £102.9m.
The deal was done through the group’s 82.5%-owned subsidiary, MWB Malmaison Holdings.
The net proceeds of the deals have been used to reduce Malmaison’s debt by £100m to £180m.
The Malmaison hotels in the sale and leaseback programme were in London, Birmingham, Manchester, Newcastle and Aberdeen.
Under the terms of the transaction, the hotels have been leased back on the equivalent of 70-year leases and will continue to operate under the Malmaison brand.
The transaction is in accordance with a circular sent to shareholders on 3 October 2011 and was approved by shareholders at a general meeting on 18 October.
bridget.o’connell@estatesgazette.com
