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Warimpex sells half of its real estate assets

28-Feb-2017


Property Magazine

Warimpex Finanz-und Beteiligungs AG is selling parts of its hotel portfolios as well as its share in the hotel operator Vienna House to the Thai investor U City Public Company Limited. The transaction comprises eight hotel shareholdings, of which two are up to 50 per cent in the ownership of UBM Development AG. The shares equal 50 per cent of the entire property assets of Warimpex, which is a total of around € 180 million. For the buyer U City this is the second transaction in Europe. Already in summer 2016 the company has acquired an office building in London. 

Besides the sale of the eight properties, the core shareholders of Warimpex, the private foundations Amber Privatstiftung as well as Bocca Privatstiftung have signed the sales documents of all shares of the hotel operator International Hotelmanagement Aktiengesellschaft in favor of U City. The closing is also expected by summer 2017. The contract signing took place last Thursday. In the coming months, the deal will be prepared for antitrust investigation as well as completed for the conclusion of the contract. According to Vienna house this deal helps to strengthen the company's capital structure to ensure further investments in growth, company structure as well as services.

For Warimpex the sale will be used to improve its capital structure as well as to realise new development projects. U City, which now enters the CEE market, might be an attractive new partner for coming projects. "The current sale will broaden our scope of action significantly and we are thus well prepared for new projects,” says Warimpex CEO Franz Jurkowitsch. “We continue to see our future in hotel and office developments in CEE and Russia, as the markets have matured and are developing further.” Poland will remain one of Warimpex’s core markets with current development projects in Łódź and Krakow, and Warimpex is currently weighing several options for further investment plans in the country.

Warimpex expects from the transaction a positive earnings contribution, which is expected to range between € 15 million and € 20 million. The sale will increase the equity ratio of Warimpex to about 25%. The purchase contract is still pending subject to the fulfilment of the standard closing conditions for such real estate transactions. Warimpex expects closing to occur by summer 2017.

The hotel portfolio that was sold includes the following hotels:

Czech Republic

  • Vienna House Diplomat Prague
  • Angelo by Vienna House Pilsen (50 per cent share) 

Poland

  • Andel’s by Vienna House Łódź
  • Andel’s by Vienna House Krakow (operating company)
  • Vienna House Easy Chopin Krakow
  • Angelo by Vienna House Katowice (50 per cent share)
  • Vienna House Amber Baltic Międzyzdroje

Romania

  • Angelo by Vienna House Bucharest

All of the hotels are operated by Vienna House, which will continue to be responsible for the management after the sale.


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