LONDON: PPHE Hotel Group has acquired from its joint venture partner its 50% interest in W29 Development LLC, a Delaware limited liability company, for a total consideration of US$ 3.3 million plus associated acquisition costs.
As a result, the Company now owns 100% of the JV Company and the associated joint venture arrangements have been terminated. The acquisition was funded from the Company’s existing cash resources.
Following completion of the acquisition, the total investment by PPHE in this project (including US$ 22.1 million of bank debt) is US$ 43.0 million.
The JV Company owns the properties located at 538, 540 and 542 West 29th Street, New York. The Company plans to develop its first art’otel in New York and will shortly be progressing the next stage of the development of the property to facilitate this.
Boris Ivesha, President and Chief Executive Officer of PPHE, commented: “This acquisition enables PPHE to fully control the design and construction process of what will be our first hotel in New York. We are excited about bringing our art’otel brand to New York and will utilise our 30-year track record to ensure we create value for our shareholders and offer guests a fantastic new destination expected in 2023.”