22nd Sep 2014 07:06
LONDON (Alliance News) - Redefine International PLC said Monday that it has acquired the Doubletree by Hilton Hotel in Edinburgh for GBP25.3 million, reflecting a net yield of approximately 6.9%.
The income-focused UK real estate investment trust said the hotel will be let to Redefine Hotel Management Ltd, a wholly-owned subsidiary of Redefine BDL Hotel Group Ltd, in which Redefine International has a 25.28% stake.
The acquisition will be initially funded by Redefine International's existing cash resources. The company said that it anticipates that the hotel will be housed in its 71.05%-held subsidiary Redefine Hotel Holdings Ltd, in due course, which is financed by Aareal Bank.
The five-storey Doubletree Hotel has 138 bedrooms which have recently been extensively refurbished and has a fitness centre, meeting rooms and food and beverage provision. The acquisition also includes the separate heritable title of The Canter public house, on the hotel's ground and basement floors.
"The transaction was structured on a conditional basis subject to a no vote in the Scottish referendum. Now that the uncertainty surrounding this has been removed we are very pleased to have secured this opportunistic investment in the city of Edinburgh which complements our existing hotel portfolio and plays well to the management skills of Redefine BDL," said Chief Executive of Redefine International.
Shares in Redefine International were Monday untraded, quoted at 53.00 pence per share shortly after the open.
By Alice Attwood; [email protected]; @AliceAtAlliance
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