Acquisition of the Fairmont Hotel in St Andrews, Scotland for approximately £32.4m
Kennedy Wilson Europe Real Estate Plc (“KWERE” or the “Company”), a London Stock Exchange listed company that invests primarily in real estate and real estate loans in Europe (LSE: KWE), is pleased to announce that it has entered into an agreement to acquire the Fairmont Hotel, St Andrews, Scotland from SABD Holding (UK) Limited. The purchase price of approximately £32.4 million represents a price per key of c. £155,000. The share acquisition is expected to complete in August 2014 and will be funded from the Company’s cash resources.
The iconic property is operated by Fairmont Hotels and Resorts, a premium hospitality company with a global reputation, under a management agreement until 2031. Set within 520 acres of land in St Andrews bay the hotel and resort comprises 209 rooms, with extensive high-quality conference facilities, two four-bed manor houses, two 18-hole golf courses, a fitness centre and spa, as well as several food and beverage offerings.
Located in the heart of Europe’s premier golf destination coupled with its vast conferencing and events space, the hotel attracts business and leisure travellers alike. The resort presents a number of exciting asset management and value-add opportunities. Opportunities for both further strategic investment and capital expenditure exist, including upgrades to the club house and other amenities within the hotel.
The property is the Company’s second high quality hotel purchase following the purchase of the Portmarnock Hotel, Dublin in June 2014, which comprises a 138-room seafront hotel and Bernard Langer designed 18-hole golf links.
Mary Ricks, President and CEO of Kennedy Wilson Europe, commented on the acquisitions: “This is an excellent addition to our portfolio - a high quality and well managed hotel which represents our second hotel transaction within two months. Furthermore this asset provides a number of good opportunities to leverage our extensive asset management expertise through which we expect to be able to add significant value over the medium term.”