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PPHE buys out partner at Hoxton hotel development site
Full-service upscale and lifestyle hotel company PPHE Hotel Group announced on Wednesday that one of its wholly-owned subsidiaries has exchanged contracts to buy from its joint venture partner its 50% interest in its joint venture company, Aspirations, for a consideration of £35m, subject to working capital adjustments to be made on completion.
The London-listed firm said Aspirations owns the site located by Old Street, Rivington Street, Great Eastern Street and Bath Place, London EC1, on which it planned to develop a property branded 'art'otel london hoxton'.
PPHE initially entered into the joint venture in 2008 by investing £11m for its 50% interest.
The acquisition, which will be funded through cash resources, would enable the company to control the timetable for construction.
As a result, construction of a mixed-use scheme consisting of the 318 room 'art'otel london hoxton', office and commercial space and ancillaries was now expected to begin in the second quarter of this year.
The board said the sale was expected to complete by the end of March.
"We are excited about this latest transaction which is part of realising the next phase of growth for our group," said PPHE president and chief executive Boris Ivesha.
"Construction of 'art'otel london hoxton' is now expected to commence in the second quarter of this year and this lifestyle hotel, located in one of London's most exciting neighbourhoods, will complement our other 'art'otel' already under construction, the landmark 'art'otel london battersea power station'."