Hispania acquires 80.5 per cent of Bay Hotels & Leisure for EUR215m

Hispania has acquired an 80.5 per cent stake in Bay Hotels & Leisure (BAY) for EUR123 million. BAY owns 11 vacation hotels (3,946 rooms), located in the Canary Islands, Balearic Islands, Huelva and Almería and a shopping centre located in Fuerteventura. 

Bay has signed lease agreements for each hotel in the portfolio, which has been valued at EYR229 million, with Grupo Barceló.

The deal is phase one of an agreement whereby Bay has also subscribed Call and Put Options regarding an optional portfolio of five more hotels and a shopping centre with a combined value of EUR227.5 million with Grupo Barceló. Execution of this second phase is expected to take place before year-end.

Additionally, Bay has closed the financing of its portfolio for EUR234 million, with a syndicated of financial entities. A total of EUR64 million euros corresponding to a first tranche have already been drawn down.

Source: Property Funds World