19th Feb 2015 08:47
LONDON (Alliance News) - Kennedy Wilson Europe Real Estate PLC Thursday said it has acquired eight loans secured by first-ranking mortgages over eight Park Inn hotels across the UK for about GBP61.5 million.
According to the London-listed property company, the acquisition was made from two financial institutions, the identity of which was not disclosed.
Kennedy Wilson Europe Real Estate said the acquisition price represents a gross yield on cost of 9.3%.
The borrowers acquired the portfolio of hotels in 2006 and 2007 for GBP131.5 million, and the total claim at completion on Monday was GBP99.8 million, the property company said.
The hotels are leased to Rezidor Hotel Group, a Nasdaq OMX Stockholm exchange listed hospitality business majority owned by Carlson, until 2030.
"This transaction gives us further exposure to the fast improving UK hospitality sector and a high quality covenant that we look forward to actively engaging with to identify various resolution strategies and asset management opportunities to enhance the value of our investment," Mary Ricks, president and chief executive of Kennedy Wilson Europe, said in a statement.
Kennedy Wilson Europe Real Estate shares were up 0.6% at 1,081.00 pence early Thursday.
By Samuel Agini; [email protected]; @samuelagini
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