A £161.5 million sale and leaseback of the four-star Park Plaza London Waterloo has been agreed by PPHE Hotel Group.
A unit trust created on behalf of several clients of CBRE Global Investors is purchasing the 494-room hotel subject to a sale and 199 year leaseback.
The initial rent of £5.6 million a year will have annual inflation adjustments subject to certain conditions.
Around £80 million will be available cash after the repayment of a loan and the deduction of transaction costs and is intended to be used to further improve and grow the group’s portfolio amongst other corporate purposes, according to the company.
PPHE Hotel Group president and chief executive Boris Ivesha said: “This sale and leaseback will unlock the capital invested in Park Plaza London Waterloo whilst allowing us to continue to benefit from the operation and associated profits.
“This transaction is in line with our strategy to realise shareholder value.”
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