PPHE Hotel Group has obtained planning permission as well as funding for the redevelopment of a site near Waterloo Station in London.
PPHE Hotel Group has obtained planning permission as well as funding for the redevelopment of a site near Waterloo Station in London.
PPHE, which bought the Hercules House site in June 2013 through its unit Hercules House Holding, said it plans to redevelop the area into a hotel and has secured funding of up to £80 mln (€105 mln) from Banque Hapoalim to fund the project.
The loan matures in June 2017 and bears interest at 5% per annum over 3-month Sterling Lbor.
The planning permission and funding are for a hotel of 438 rooms, a swimming pool, spa, restaurant and bar. Hercules has signed a contract with WW Gear Construction for the design and construction of the hotel on a turnkey basis. The basic contract price is £63.47 mln for 438 rooms with completion planned for September 2016.
Gear is a wholly owned subsidiary of Red Sea Group, which in turn owns 44.67% of the issued share capital of PPHE. Red Sea is controlled by Euro Plaza Holdings, a unit of family trusts of Eli Papouchado, the chairman of PPHE.
Guernsey-registered PPHE, formerly known as Park Plaza Hotels, bought the Hercules House last year from Mapeley for £23.5 mln (almost €28 mln) in cash.