Owner Of Dublin's Zanzibar Locke Hospitality Venue Ready To Ramp Up Its Irish Expansion
According to The Business Post, the company behind the redevelopment of Zanzibar Locke on Lower Ormond Quay, Edyn, is ready to ramp up its Irish expansion through funding from private quity fund Blackstone.
Edyn has reportedly received a £195 million multi-asset debt facility from Blackstone to fund its expansion into Europe and intends to use some of that funding on developing Edyn’s interests in Dublin.
The firm is also looking to branch out into Cork and Galway.
Zanzibar Locke Redevelopment And Locke And Cove Expansion
Edyn has two prominent hospitality brands in its portfolio: Locke, a lifestyle aparthotel brand, and Cove, a cheaper serviced apartment brand.
"We are certainly looking for further opportunities in Dublin, in particular for our new Cove brand," Andrew Fowler, the Dublin-born acquisitions director of Edyn, reportedly said. "We would love to add a further project or two in the Dublin 2 and Dublin 4 area of the city. Cork and Galway are also locations we are looking at."
Fowler reportedly said that one of the purposes of Edyn's relationship with Blackstone is to enhance their speed of acquisition in what is a "challenging market from a debt standpoint".
In Dublin, as well as revamping Zanzibar Locke for upwards of €20 million, Edyn is developing Beckett Locke, a multi-purpose complex which will include 240 apartments and a food hall near the Three Arena in Dublin's North Dock.
The complex is due to open in the final quarter of the year.
Fowler's strategy is reportedly to create a "hub and spoke" mechanism, so once a Locke location is set up in a "European gateway city" such as Dublin, several spokes or Cove locations can be "bolted on" as he describes it.
The firm's focus is largely on redeveloping existing hotels rather than building new properties.
Fowler began his career in Dublin with Staycity, the Irish aparthotel operator headed by Tom Walsh, before moving to London where he co-founded Urban Villa.
The firm was rebranded as Locke Hotels following its acquisition by Oaktree Capital. It has been owned by Brookfield Asset Management since 2018, with Locke one of a number of brands operating within Brookfield's Edyn portfolio.
The deal between Edyn and Blackstone is in keeping with the US Equity firm’s emergence as one of Britain’s most prolific investors in recent months.
The group, which is led by multibillionaire Stephen Schwarzman, who made $610.5 million in pay and dividends last year, was behind the recent £3 billion move to take control of Bourne Leisure, the holidays group behind Butlin's, Haven and Warner Leisure Hotels and a £1.3 billion acquisition of St Modwen, the property group.
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