€106m Cinema Deal Clinched
The Irish Independent, 14th March 2007The Irish "buyaspora" remains in top gear with a portfolio of six UK cinemas and a major Brussels hotel development now added to the overseas acquisitions list.
Cheval Properties (which includes Irish entrepreneur turned property developer Tony Kilduff among its directors) has brought a portfolio of six Vue cinemas in the UK.
The consideration was around €106m, reflecting a 6.2% yield.
The properties are expected to be invested in the hugely successful Belfry property fund, operated through Mr Kilduff by AIB. The portfolio comprises Vue’s flagship cinema in Leicester Square, WC1, cinemas in Cambridge, Doncaster, York and Accrington, and a development opportunity in Bury.
Vue has taken a 29-year lease on Leicester Square, a three-year lease in Bury and 15 year leases on the remaining properties.
Cheval believes there is potential for active asset management and further development of these properties.
Cheval snapped up the properties after a deal between Vue and the Edinburgh based Miller Group collapsed. Contracts for the Miller deal were pulled late last year.
Vue continues to operate the Liffey Valley cineplex in Dublin.
Meantime, Irish owned property company Thornsett Group has signed a multi million euro deal with Starwood Hotels & Resorts Worldwide to develop the first "Aloft" hotel in Europe at Thornsett’s newly acquired site in the centre of Brussels.
The deal was signed at the recent 10th International Hotel Investment Forum in Berlin, when Starwood and its W Hotels division introduced its Aloft brand into Europe, Middle East and Africa.
Just as W Hotels broke through the clutter of conformity in the upscale hotel arena, Aloft aims to "raise the bar in the select-service category, offering urban inspired, loft like guest rooms, leading edge technology services, and an energetic lounge scene.” The first 150 bedroom Aloft hotel will be located on Rue Belliard, Leopold, in the "European" quarter of Brussels, on a site purchased by Thornsett last month. The scheme is located approximately 250 metres from the European Commission/European Parliament buildings and is also overlooked by the Council of Ministers building.
The site has full planning permission for a mixed-use development with a gross development value in the region of €80m. As well as the Aloft hotel, the 22,500 sq m development will also include 108 one and two-bed apartments plus 1,500 sq m of retail space with parking.
Construction will commence in autumn of this year, with completion scheduled for autumn 2009.
Peter McCarthy, CEO of Thornsett Group, confirmed yesterday that they have secured the significant agreement with Starwood Hotels & Resorts: "Starwood is one of the biggest and most successful hotel groups in the world and we are very excited to be working with them. We are also looking forward to being involved in the development of the new Aloft concept, which we feel is a prefect fit with our central site in Brussels."
Thornsett Group is a developer of both private residential and commercial properties. The total value of schemes currently being undertaken by the group is in the region of €400m.