Redefine International, the income focused UK Real Estate Investment Trust ("UK-REIT"), is pleased to announce the purchase of the Doubletree by Hilton Hotel in Edinburgh's city center for £25.27 million (approx. €32 million) , representing a net initial yield of approximately 6.9%.
The Hotel provides 138 bedrooms which have recently been extensively refurbished to provide high quality flexible accommodation appealing to both business travelers and tourists. The five store Hotel has extensive food and beverage provision and meeting rooms.
The Acquisition also includes the separate heritable title of The Chanter public house, located on the ground and basement floors of the property.
The Hotel will be let to Redefine Hotel Management Limited, a wholly owned subsidiary of Redefine BDL Hotel Group Limited, in which Redefine International has a 25.28% stake.
The Acquisition will initially be funded by existing cash resources held by Redefine International. It is anticipated that the Hotel will be housed in its 71.05% held subsidiary Redefine Hotel Holdings Limited in due course, which is financed by Aareal Bank.
Mike Watters, Chief Executive of Redefine International, said: "The transaction was structured on a conditional basis subject to a no vote in the Scottish referendum. Now that the uncertainty surrounding this has been removed we are very pleased to have secured this opportunistic investment in the city of Edinburgh which complements our existing hotel portfolio and plays well to the management skills of Redefine BDL."