Genting seeks buy-in on five-star Mayfair hotel
Casino giant Genting is planning to sell stakes in its freehold at 19 Old Park Lane in Mayfair, W1 – including the majority of its five-star COMO Metropolitan hotel.
Genting has appointed CBRE to sell Project Tyburn, which also includes part of the Nobu London restaurant, a majority stake in Colony Club casino and nine of 19 luxury serviced apartments, for £68m.
A deal at this price would represent a net initial yield of 2.5%, assuming purchaser’s costs of around 6.8%.
Casino giant Genting is planning to sell stakes in its freehold at 19 Old Park Lane in Mayfair, W1 – including the majority of its five-star COMO Metropolitan hotel.
Genting has appointed CBRE to sell Project Tyburn, which also includes part of the Nobu London restaurant, a majority stake in Colony Club casino and nine of 19 luxury serviced apartments, for £68m.
A deal at this price would represent a net initial yield of 2.5%, assuming purchaser’s costs of around 6.8%.
The Nobu restaurant in question was the first to open in Europe, after the 144-bedroom hotel – also known as ‘the Met’ in the UK – underwent a major revamp in 1997.
The freehold, located next to Park Lane in the Luxury Quarter, is subject to two headleases with an unexpired term of around 70 years. These collectively generate passing rent of circa £1.8m.
The casino giant had bought the hotel in 2011 for £45m from Chelsfield Partners, a property company co-founded by Sir Stuart Lipton and Elliott Bernerd.
Genting UK has recently put proceeds from disposals towards reducing its group borrowings, as well as for other potential investment opportunities.
The business, which is a subsidiary of Genting Malaysia, offloaded its stake in Maxims operator Coastbright for around £34.6m in March. Genting said at the time that the deal would allow the UK business to “streamline” its operations.
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