The deal will be made through Redefine’s 71 per cent held subsidiary, Redefine Hotel Holdings (RHH) Limited, from Camden Lock and Earls Court LLP for a purchase consideration of 6.3 million British pounds.
“We referred to this potential transaction during our recent successful 54.7 million British pounds capital raise and are pleased to be making the final steps towards deploying the capital now,” said [DATA RPL:Redefine International] chief executive, Mike Watters.
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“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.”
The purchase consideration for the remaining shareholding in BNRI, which is currently 60 per cent held by RHH, will be funded by utilising part of the proceeds from the company’s recent share placement, as well as further co-investment by the existing co-investors in RHH, on a pro rata basis.
The transaction is conditional on a proposed refinancing of the entire hotel property portfolio being concluded with the existing lender is currently in progress.