PPHE buys out joint venture partner on New York property
Hospitality real estate company PPHE Hotel Group has acquired the 50% interest in W29 Development from its joint venture partner, for a total consideration of $3.3m (£2.53m) plus associated acquisition costs.
The FTSE 250 firm said that as a result, it now owned 100% of the joint venture company, and the associated joint venture arrangements have been terminated.
It said the acquisition was funded from its existing cash resources.
Following completion of the acquisition, the total investment by PPHE in the project, including
$22.1m of bank debt, stood at $43m.
The board said the joint venture company owns the properties located at 538, 540 and 542 West 29th Street in New York City.
PPHE said it planned to develop its first art'otel property in the city, and would shortly be progressing to the next stage of development on the property to facilitate that.
“This acquisition enables PPHE to fully control the design and construction process of what will be our first hotel in New York,” said president and chief executive officer Boris Ivesha.
“We are excited about bringing our art'otel brand to New York and will utilise our 30-year track record to ensure we create value for our shareholders and offer guests a fantastic new destination expected in 2023.”
At 0921 GMT, shares in PPHE Hotel Group were down 0.52% at 1,930p.