Raag Hotels Limited has formed a new Joint Venture with the Wellcome Trust and the acquisition of a site for a new Tune Hotel in Canary Wharf.
The Wellcome Trust has acquired a 50% shareholding in Raag Hotels alongside the remaining shareholders, a company associated with the Jivraj Family and a company owned by Naguib Kheraj. The shareholders have committed additional equity to fund the future roll out of more Tune Hotels in London, taking the portfolio from the current 616 rooms to a target of 1500 rooms. A price has not been disclosed, but it is thought ot reflect a net initial yield of 6.5% on the operating assets.
Having provided the majority of the capital to back the initial start-up and successful development of the business over the past three years, Mountgrange Real Estate Opportunity Fund is realising its investment in full as part of the transaction.
via CoStar UK – The Leader in Commercial Property Information.
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