PPHE Hotel agrees to buy back Park Plaza London Waterloo freehold for £147.9m

PPHE's repurchase of the Park Plaza Waterloo freehold is a strategic capital recycling reversal: having sold the freehold in 2017 to fund its development pipeline, PPHE is buying it back at a £13.6 million discount to the original sale price, while eliminating a growing inflation-indexed rental stream. The 92% LTV financing from Bank Hapoalim reflects the quality of the underlying asset. The 494-room hotel is one of the largest in South Bank and a flagship for PPHE's UK portfolio. PPHE Hotel Group (operator of Park Plaza and art'otel brands, listed in London; buyer); Bank Hapoalim BM (Israeli bank, strategic long-term partner of PPHE; £136.5 million lender); unnamed previous freehold holder (seller). £136.5 million new debt facility with Bank Hapoalim secured on the freehold/long leasehold interest; two-year initial term with extension right; floating rate with approximately 90% hedged. Remaining ~£11.4 million funded from existing cash.