By Thabang Mokopanele

INTERNATIONAL developer IFA Hotels & Resorts has concluded its second funding transaction in the past six months to fund the acquisition of the group’s YOTEL New York property for $315m.

IFA said yesterday that a consortium consisting of itself, Kuwait Real Estate Company and United Investments Portugal had simultaneously closed a financing and acquisition deal valued for its YOTEL New York property.

IFA vice-chairman and CEO Talal Jassim al-Bahar said securing the deals, both with foreign lenders, showed that despite tough market conditions, the "right project in the right location with the right sponsor attracted the necessary capital".

Mr al-Bahar said the opening of YOTEL New York was a milestone in its investment in the brand.

YOTEL New York offers guests the benefits of a luxury hotel but in a smaller area.

Premium cabins are equipped with a space-saving motorised moving bed; monsoon shower; Technowall with TV, music and power services; a workstation; and free super-strength Wi-Fi.

IFA Hotels & Resorts’ Africa and Indian Ocean president Wessel Witthuhn said the deal "once again demonstrates the global strength of the IFA Hotels & Resorts brand in the hospitality industry".

Mr Witthuhn said the deal "reflects positively on the future footprint" of IFA Hotels & Resorts and its products, "as well as on the close relationships we nurture with our partners who offer local expertise to projects such as these".

The financing for YOTEL, worth $240m, was led by Atrium Holding Company, a private investment vehicle based in the US, with co- funding by Centerbridge Partners, an investment firm.

The acquisition of the property from Related Company, the overall project developer, happened simultaneously with the financing, bringing the total value of the transaction to $315m. Mr al-Bahar said the company expected "significant" returns on its investment in New York.

Source: Business Day