Apr 03, 2017
Standard Bank provided a winning offer of R2 billion to the Hospitality Property Fund Limited to secure a medium term loan for 36 months. The Hospitality Property Fund was faced with an opportunity to purchase a hotel portfolio worth R5.6 billion from Tsogo Sun - a premier hospitality, gaming and entertainment group with a portfolio of 14 casinos and entertainment destinations and over 100 hotels in South Africa, Africa, the Seychelles and the Middle East.
Tsogo Sun is a premier hotel operator with a 64% average occupancy rate over a 23-year period, making this a highly attractive proposition. That said, the Hospitality Property Fund is the only specialised Real Estate Investment Trust investing solely in the hospitality and leisure sector. This was a strategic play for Tsogo Sun to house their non-gambling hotels into one portfolio and includes premium hotels such as the Westin, Radisson V&A and Radisson Gautrain.
The hard-working collaborative effort between the Diversified Lending & Leverage and Real Estate Finance teams yielded the most competitive deal of the day amidst competing bids from five other competing financial institutions. In the end, Standard Bank was able to offer the most attractive lending terms which speaks to a deep-seated customer centric model.Back to all deals
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