Johannesburg - Redefine International has bought a 25.35 percent stake in the International Hotel Group, which made its debut on the JSE’s Alternative Exchange on Wednesday.
Redefine, which is listed in both London and Johannesburg, noted on Thursday morning that it would pay around £3.8 million for the stake in the hotel and leisure company.
Redefine CEO Mike Watters notes the investment is “part of our overall hotel investment strategy”. He says Redefine expects the International Hotel Group to “grow into a significant hotel investment vehicle over the medium-term and look forward to superior risk adjusted returns being achieved by its highly rated management team”.
International Hotel Group on Wednesday became the 12th company to list on the AltX this year. it is incorporated in the British Virgin Islands and listed on the Luxembourg Stock Exchange (LuxSE) and is a hotel- and leisure-focused property investment company which owns three hotels in the UK.
“The JSE is delighted to welcome International Hotel Group Limited to the AltX board,“ said Donna Oosthuyse, director of Capital Markets at the JSE.
Redefine, founded in 2002, has a property portfolio that is geographically focused in the United Kingdom and Germany within the retail, commercial and hotel sectors. Its portfolio is independently valued at being worth more than £1 billion.
The latest acquisition follows its September announcement that it had reached a conditional agreement with the Aegon UK Property Fund to buy the AUK Portfolio for £437.2 million.
It also said it would buy the Banbury Cross Retail Park for £52.5 million.
The AUK Portfolio comprises 19 properties valued at £439.9 million. Of these, six assets are single let, with the balance being multi-let. The Banbury Cross Retail Park is an open A1 retail warehouse park which generates an annual passing rent of £3.1 million, rising to £3.5 million once existing rent free periods come to an end.
IOL