An undisclosed fund managed by Ares Real Estate Group, and EQ Group Limited acquired 21 Hotel Assets Portfolio from Land Securities Group Plc for £400 million.
May 07, 2024
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An undisclosed fund managed by Ares Real Estate Group, and EQ Group Limited acquired 21 Hotel Assets Portfolio from Land Securities Group Plc (LSE:LAND) for £400 million on May 8, 2024. The consideration consists of £350 million in cash and £50 million in Earn out related payment payable within 24 months. Concurrently, Ares entered into an agreement with AccorInvest to surrender these leases and transfer operations of the relevant hotels to Ares. The hotel portfolio, which comprises 21 assets, is fully let to AccorInvest and generated net income of £28.4 million over the company's last reported financial year. The net proceeds of the transaction will initially be used to repay debt.
An undisclosed fund managed by Ares Real Estate Group, and EQ Group Limited completed the acquisition of 21 Hotel Assets Portfolio from Land Securities Group Plc (LSE:LAND) on May 8, 2024. Anna Cartwright, Simon J. Kiff and Ryan Hill of Jones Day (London) acted as legal advisor to Ares Real Estate Group. Dion Panambalana, Paul Tonkin, Sian Owles, Charles Jemmett and Aaron Burchell Hogan Lovells has advised Landsec.
Land Securities Group PLC is a United Kingdom-based real estate company. The Company builds and invests in buildings, spaces, and partnerships to create sustainable places, and connect communities. The Company has a portfolio of retail, leisure, workspace, and residential hubs. Its segments include Central London, Major retail destinations (Major retail), Mixed-use urban neighbourhoods (Mixed-use urban) and Subscale sectors. The Central London segment includes all assets geographically located within central London. The Major retail segment includes all regional shopping centers and shops outside London and its outlets. The Mixed-use urban segment includes its investments in mixed-use urban places. The Subscale sectors segment consists of leisure, and retail parks. Its properties include Mayfield, The O2 Centre, Lewisham Shopping Centre, Dashwood, 30 Eastbourne Terrace, The Zig Zag Building, Gunwharf Quays, Buchanan Galleries, and 30 Eastbourne Terrace, among others.
An undisclosed fund managed by Ares Real Estate Group, and EQ Group Limited acquired 21 Hotel Assets Portfolio from Land Securities Group Plc for £400 million.