Investment - Recent Activity
Highwood Residential Ltd
Christie + Co was instructed to dispose of two development sites on behalf of Highwood Residential Ltd, a building contractor and developer specialising in residential and healthcare developments. The investment interest was sold to a private investor, subject to new leases with Southern Cross PLC, for a price representing a net initial yield of approximately 5.7%. The investor will forward-fund the development of the two care homes, comprising 150 purpose-built beds, in Andover and Gosport.
Four Pillars Hotel Group
RREEF Real Estate has acquired the Four Pillars Hotel Group. The deal, which was worth a reported £120 million, was brokered by Christie + Co on behalf of Four Pillars. The independent hotel group owns and operates five hotels in Oxfordshire and Gloucestershire. Under the terms of the acquisition agreement, Four Pillars Hotels’ founding director Brian Murtagh and existing CEO Charles Holmes will retain an equity position in the hotel group. In addition, a joint venture will be established between RREEF and the four original founding shareholders of Four Pillars to identify and build further sites which will be operated under the Four Pillars banner.
Christie + Co advises Moorfield Group on Macdonald Hotels acquisition
Christie + Co successfully advised Moorfield Group on the acquisition of 24 Macdonald Hotels. The portfolio, which was marketed subject to management contract with the Scottish hotel operator, has a total of 2,511 rooms and includes the nearly completed development of Phoenix House, the former Royal and Sun Alliance Building, in Bristol. The deal will see Moorfield Group take ownership of their second hotel portfolio in as many years. In March 2006, the UK-based private property company bought 40 hotels in a £110m sale and leaseback deal with WA Shearings.
Christie + Co acts for Gloucester Capital in the acquisition of the Portman Hotel
The four star 272-bedroom Portman Hotel was recently acquired by Gloucester Capital, a new company created for the transaction, for an undisclosed amount. Christie + Co advised Gloucester Capital on the acquisition of this leasehold property, which is one of London's most famous hotels. Radisson SAS will continue to operate the hotel and it is anticipated that an extensive refurbishment will be carried out.
Acquisition of the Folio Hotel, Glasgow
Christie + Co acquired the Folio Hotel in Glasgow from Washington Hotels on behalf of private investors for an undisclosed price. Until recently, the hotel was operated by Corus Hotels, before being sold to Washington Hotels. The 121-bedroom hotel, which is located in Glasgow's city centre on Argyle Street, was susequently let to Folio Hotels on a 25-year lease. The hotel is due to undergo a substantial refurbishment programme over the next two years.
Sale of Cannon Capital Group Holdings
Christie + Co sold the entire share capital of Cannon Capital Group Holdings, a company which holds the freehold interest in 91 care homes. The freehold care homes, which are currently let to Ashbourne Healthcare and total approximately 4,500 beds, have been acquired by London & Regional Properties for £365.5 million. As the second largest healthcare sale of 2005, the deal was also the largest ever transacted by an agent in this sector.
The Brewery, Chiswell Street, London, sells for £55m
Christie + Co sold Whitbread's former HQ in the City of London, for £55m. A highly competitive marketing strategy and close teamwork resulted in over 20 bids, with the eventual sale being concluded within four months of instruction. The 250-year-old site incorporated “The Brewery”, a highly successful functions and banqueting suite, 120,000 sq ft of former office space (with planning for 118 serviced apartments) and a variety of investment and development properties in close proximity.
Nine QMH hotels sold through Christie + Co
Christie + Co handled the sale of nine Queens Moat House hotels – in one of the largest portfolio transactions of 2005. The hotels were sold to specialist hotel investors Jefferson Hotels. Prior to purchase, the investor secured lease and management contract agreements with Rezidor SAS, who will operate the hotels under their growing Park Inn brand.
Harrington Hall, Kensington
With the assistance of our Barcelona Office, Christie + Co identified a Spanish investor looking to acquire property in London. We were subsequently instructed by Cola Holdings to negotiate the sale of the 200-bedroom Harrington Hall hotel in Kensington. We sought offers in the region of £50 million and the sale was concluded following complex negotiations. As part of this deal the purchaser arranged to lease the hotel to Spanish operator NH Hoteles.
London Bridge Tower
In its role as letting agent for Europe’s tallest building and arguably its finest mixed-use development – London Tower Bridge – Christie + Co advised in leasing part of the building on behalf of Sellar Property Group to Shangri-La Hotels and Resorts for its first European hotel. The 195 room deluxe property, which is also the first new-build, 5 star hotel in central London in over a decade, will occupy floors 34 to 52 of the impressive 70-storey building known as the “Shard of Glass”.
Ramada Hotels in East Anglia
Our Investment Division handled a £17m sale and leaseback of four Ramada-branded hotels all located in East Anglia. The hotels were sold to a high net worth Irish investor. The transaction was completed in just over 4 weeks from it being agreed. The deal helped our client repay an existing investor in their company and provided a platform for future expansion with a new, extremely well-funded investor.
Buckerell Lodge, Exeter
Christie + Co handled the sale of the investment interest on the 35-year lease on the 53-bedroom Buckerell Lodge in Exeter on behalf of Elmville. The investment interest in the hotel was sold to a private investor for more than £4.1m, at a yield of just under 7% - some way ahead of the perceived going-concern value at the time.
