Maven Capital Partners’ property arm has sealed the £14.5 million sale of Hotel Indigo Glasgow – a 94-bedroom establishment in the centre of the city.
The transaction agreed with Heeton Holdings, a Singapore-listed property conglomerate, includes the sale of the freehold, or heritable, interest in the hotel to a ground rent fund and of the resultant long leasehold interest to Heeton, which has acquired the trading business and goodwill of the hotel.
Maven noted the unusual structure of the deal, but added that its “significant experience” of hotel development funding agreements had enabled it to split these two interests and “drive additional value for its investors”.
Ramsay Duff, investment director at Maven, said: “Maven has a strong commitment to Glasgow, with our headquarters here and with two other hotels including our recently opened ibis Styles Glasgow Centre West.
“The city remains one of the best performing hotel market in the UK, however there have been relatively few hotel transactions in the city and it has been gratifying to see the level of interest in the Indigo.
“We are delighted to have completed the sale, which has delivered attractive returns for investors, in part by the way we structured the transaction. The hotel was one of the very first developments to be funded utilising Business Premises Renovation Allowance,” he added.