Redefine International set to acquire full ownership of the Holiday Inn Express Hotel in Earls Court for R111.2 m

Posted On Tuesday, 01 April 2014 08:22 Published by eProp Commercial Property News
Rate this item
(0 votes)

Redefine International today announced it has agreed to purchase the remaining 40% of the issued shares in BNRI Earls Court Limited to secure full ownership of the Holiday Inn Express Hotel in Earls Court, London.

Express Holiday Inn Earls Court

The £6.3 million (ZAR111.2 million) transaction, which represents a 7.0% net initial yield, is being effected through Redefine International's 71% held subsidiary Redefine Hotel Holdings Limited (RHH), and implies the value for the 150-bedroom hotel of £28.1 million (ZAR496.0 million).

Mike Watters, Chief Executive of Redefine International explains the hotel forms part of RHH's existing portfolio of seven hotels. "It is well located, close to the Earls Court Exhibition Centre and Arena and the Olympia Exhibition Centre and has performed extremely well, with underlying operating earnings 15% ahead of the budget for the six months to 28 February 2014."

Earls Court Holiday Inn Express Hotel is held under freehold title and is subject to a franchise agreement with IHG Hotels Limited until 2023. Supported by its positive performance, RHH completed a 50 bedroom extension to the hotel in November 2012.

The purchase consideration will be funded by part of the proceeds from Redefine International's recent share placement, together with further co-investment, on a pro rata basis, by the existing co-investors in RHH.

Watters comments, "We are pleased to make the final steps towards deploying the capital from our recent share placement. The limited service hotel sector continues to thrive in pockets of London, and this, combined with our in-depth knowledge of the performance of this particular hotel and our ongoing belief in the potential of this sector, supports our confidence that the transaction will deliver a high quality income to our investors."

Redefine International is a UK-REIT with a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange. Redefine International's geographically diverse investment portfolio is independently valued over £1 billion and comprises real estate assets in the retail, office, industrial and hotel sectors across the UK, Europe – specifically Switzerland, Germany, the Netherlands and the Channel Islands - and Australia.

For South African investors it represents a Rand hedge in a stable, sustainable income fund with exposure to real estate in first world markets.

The transaction is conditional on a proposed refinancing of the entire hotel property portfolio being concluded with the existing lender, which is currently in progress.

Last modified on Thursday, 17 April 2014 15:39

Most Popular

Redefine Properties appoints Diane Radley to board of directors

Jul 21, 2020
Diane_Radley
JSE-listed diversified Real Estate Investment Trust Redefine Properties (JSE: RDF) has…

Another interest rate cut makes it the ideal time to buy, rather than rent

Jul 23, 2020
Carl Coetzee CEO of BetterBond
With the interest rate at its lowest in decades, after the welcome announcement today of…

Lower house prices in the Western Cape behind renewed interest from first-home-buyers

Jul 16, 2020
Carl Coetzee CEO of BetterBond
Property in the Western Cape is regarded by many as among the most expensive in the…

Lockdown and low interest rates drive huge growth in home loan applications

Jul 17, 2020
oobarometer Q2 2020
The second quarter of 2020 (Q2 20) commenced with two months of lockdown for the real…

Construction resumes on Old Cape Quarter Development

Jul 22, 2020
Old_Cape_Quarter
Following the required pause during lockdown, construction has once again resumed on the…

Please publish modules in offcanvas position.