Starwood Looks For More Irish Debt Deals After €60M Citywest Hotel Loan
Starwood European Real Estate Finance has loaned Tetrarch Capital €60M to fully acquire Citywest Hotel in Saggart, County Dublin from Pimco.
The deal shows how global lenders like Starwood are becoming increasingly confident about providing debt against alternative asset classes like hotels in Dublin.
Starwood European Real Estate Finance is a listed debt fund managed by Starwood that provides loans across Europe.
It is understood California-based Pimco was the substantial majority shareholder prior to the transaction. Tetrarch was also an investor in the hotel, and the deal means it has bought Pimco out of the asset.
The hotel, which is the largest in Ireland with 764 rooms, was acquired by the joint-venture partners in September 2014 for €29M with a further €12M invested to upgrade the four-star property. The new debt package shows how far hotel values have climbed in the past four years.
In addition to a large number of rooms, the hotel also has 30 different meeting and event venues as well as convention centre for up to 8,000 people and an 18-hole, par-70 golf course.
Tetrarch said the cash injection from Starwood would also be used for the ongoing refurbishment as well as the repositioning of Citywest as a hotel, conference and entertainment destination.
Starwood has also provided a €9M loan to finance the conversion of 80 aparthotel units into 84 residential apartments at Westpark Apartments located beside the hotel’s golf course, which is planned for completion in October 2019.
“The transaction continues our strategy of seeking out good risk-adjusted opportunities with high quality partners," Starwood Capital Vice President Lorcain Egan said. “Ireland remains one of the primary target markets for Starwood European Real Estate Finance as part of its broader European investment strategy."
Tetrarch Capital Chief Executive Michael McElligott said it had always been the company’s ambition to become the long-term owners of the hotel.
“We remain very optimistic for the future of the hotel, convention centre and our wider holdings in the area, and will continue to invest in plans we have for the further enhancement of Citywest as Ireland’s preeminent conference destination,” he said.