Tetrarch Capital has received a €60m Starwood Capital Group loan to help it take full control of Citywest Hotel in Ireland.
In 2014, Tetrarch, which was previously known as Brehon Capital, bought the asset in partnership with US investment firm PIMCO for around €29m.
Since 2014, the hotel has undergone an €11m investment programme.
IPE Real Assets understands that PIMCO was the ‘substantial majority shareholder’ prior to this transaction.
The Irish real estate investment company said today the loan from Starwood European Real Estate Finance will be used to buyout PIMCO from the previous partnership structure, and provide capital for the ongoing refurbishment.
Tetrarch said Starwood has also provided an additional €9m loan to finance the conversion of 80 aparthotel units into 84 residential apartments at Westpark Apartments.
Citywest, which is currently the largest hotel in Ireland, features 30 different meeting and/or event venues, a convention centre with physical capacity for up to 8,000 people and an 18-hole, par-70 championship golf course.
The six apartment blocks are adjacent to the golf course at Citywest Hotel, and the redevelopment is due for completion by October 2019.
Michael McElligott, the chief executive of Tetrarch Capital, said: “The deal makes us the long-term owners of Citywest, which has always been our ambition.
“We remain very optimistic for the future of the Hotel, Convention Centre and our wider holdings in the area, and will continue to invest in plans we have for the further enhancement of Citywest as Ireland’s preeminent conference destination.”
Lorcain Egan, the vice president of Starwood Capital, said: “The transaction continues our strategy of seeking out good risk-adjusted opportunities with high-quality partners.
“Ireland remains one of the primary target markets for Starwood European Real Estate Finance as part of its broader European investment strategy.”
