Continental Property Investments (CPI), the Paris-based real estate investment firm of Lebanese businessman Boutros El Khoury, has acquired the five-star Hilton hotel Valencia out of administration for a bargain basement price.
Continental Property Investments (CPI), the Paris-based real estate investment firm of Lebanese businessman Boutros El Khoury, has acquired the five-star Hilton hotel Valencia out of administration for a bargain basement price.
The stylish hotel was built in 2007 for a cost of EUR 110 mln but was acquired by CPI for just EUR 42 mln. The asset was sold by the administrator, advised by Christie + Co.
The property - the tallest building in Valencia - offers 304 bedrooms, a luxury spa and health club and is well equipped for business meetings, conferences and events, with 16 designated rooms plus Valencia's largest ballroom, which can hold up to 800 guests. CPI has signed up Sol Meliá Hotels and Resorts, the largest hotel chain in Spain, to operate the hotel under a long term management agreement.
Opened in February 2008, the hotel closed down in June last year after its owner, Indian businessman Lal Bhagwandas Sirwani went into receivership. Christie + Co acted as exclusive advisors to Eurohypo, which had lent over EUR 60 mln for the development of the property.
Chris Day, international managing director at Christie + Co, said: 'As trading performances continue to improve across Spain the demand for such assets will continue to grow and by channelling this interest through a proper sales process successful outcomes such as this can be achieved.'
CPI, which entered Spain in late 2009, has since acquired five properties in the country including Triángulo Princesa in Madrid from Metrovacesa and the Miramar and Gran Florida hotels in Barcelona, from Area Property Partners. In a statement, the company said it is considering 'further acquisitions' in other property segments in Madrid.
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