Shlomo Group unit SHIR Shlomo Real Estate Ltd. has expanded its cooperation with Fattal Properties (Europe) in Europe. Both companies announced that they had made a joint €30 million (NIS 130 million) investment in acquiring the Gran Atlanta Hotel in Madrid, Spain.
The Gran Atlanta is a four-star hotel with 180 rooms. The partners will pay €24 million for the hotel and intend to invest a further €6 million in renovations expected to begin in the first quarter of 2017. They plan to obtain financing for 60% of the deal from a foreign bank and pay for the remainder using their own resources.
In parallel to this deal, the companies have signed a lease agreement with a company fully controlled by Fattal, which will lease the hotel for 20 years to the Leonardo chain brand, for a fixed lease of €2.1 million and a further sum of over €5 million that will vary based on the hotel's revenue.
Fattal and SHIR Shlomo Real Estate began cooperating in 2014, when the latter leased a 5-star hotel with almost 200 rooms in Manheim, Germany to Fattal for 25 years, for a fixed lease of €2.4 million and lease varying on hotel revenue of over €8.75 million.
Last week, Fattal signed an agreement to buy an hotel in Scotland for £43.5 million and four hotels in Slovenia for €45 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 28, 2016
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