Tetrarch Closes Citywest Acquisition Backed By €60m Starwood Loan
Tetrarch Capital has announced the completion of its acquisition of Dublin's 764-bedroom Citywest Hotel.
The transaction was supported by a €60 million loan from Starwood European Real Estate Finance Limited, an affiliate of Starwood Capital Group, and the funds will be used to buyout PIMCO from the previous partnership structure, and provide capital for the ongoing refurbishment and repositioning of Citywest into a leading Irish hotel, conference and entertainment destination.
Starwood have also provided an additional €9 million loan to finance the conversion of 80 aparthotel units into 84 residential apartments at Westpark Apartments. The six apartment blocks are adjacent to the golf course at Citywest Hotel, and the redevelopment is due for completion by October 2019.
Currently the largest hotel in Ireland, Citywest features 30 different meeting and/or event venues, a convention centre with physical capacity for up to 8,000 people and an 18-hole, par-70 championship golf course. The hotel and convention centre were developed between 1990 and 2009, and, since Tetrarch Capital’s involvement began in 2014, the hotel has undergone an €11 million investment programme, upgrading guestrooms and common areas, including the lobby, bar, restaurant and reception areas.
Tetrarch Capital chief executive Michael McElligott commented, “We are delighted to have completed this transaction backed by financing from Starwood. The deal makes us the long-term owners of Citywest, which has always been our ambition. 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.”
Lorcain Egan, vice president of Starwood Capital, stated, “Starwood is delighted to support Tetrarch’s acquisition of the Citywest Hotel and complex. The transaction continues our strategy of seeking out good risk adjusted opportunities with high quality partners. Ireland remains one of the primary target markets for Starwood European Real Estate Finance as part of its broader European investment strategy.”
Tetrarch was advised on the debt placement by HFF Real Estate Limited, a leading provider of commercial real estate and capital markets services. HFF Senior Managing Director Michael Kavanau commented, “As HFF continues to strategically focus on the growth of our European platform, we are extremely fortunate to work alongside best-in-class operators such as Tetrarch Capital. The hotel is already one of the top destinations within Ireland, and should expand its competitive stature within Europe given the newly-established partnership between Tetrarch and Starwood.”