Israel insurance firm secures shares in London hotels through new joint venture
Hospitality real estate group PPHE Hotel Group has secured multi-million pound funding through a new partnership.
The group has confirmed that it has agreed terms to enter into a joint venture with Israel-based insurance and savings business Clal Insurance.
For a cash consideration of £113.7m, Clal will become a minority partner in JVCo, which operates both the 646-room Park Plaza London Riverbank and the 343-room art’otel london hoxton development project.
The group remains the majority owner of the hotels by retaining a 51 per cent holding in JVCo and through its management company has secured a 20-year hotel management agreement in respect of both hotels.
Boris Ivesha, president and CEO of PPHE Hotel Group, commented: “We are excited to partner with Clal on Park Plaza London Riverbank and our art’otel london hoxton development, which reflects our mutual confidence in the strength of the London hospitality real estate market.
“The agreement values its assets at the Group’s latest EPRA NAV level and the proceeds will enable the Group to pursue new growth opportunities as the pandemic period subsides.”
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