Hoog Catharijne Mall Hotels
Borealis Hotel Group and First Sponsor Group to develop 6 floors of Netherlands mall into two hotels
Scheduled for 2018 – 310 Rooms
First Sponsor will contribute up to approximately $13.40 million to develop the property while hotel operator Borealis Hotel Group will provide up to another $2.23 million at an interest rate of 7 percent per year if more development funds are needed.
Once the development is completed, the two hotels will have about 192 guestrooms and 128 guestrooms, respectively. First Sponsor has planned to finance the purchase price through the drawdown of its existing unsecured credit facilities. "The directors believe that this acquisition and the rental income from the leasing arrangement under the lease agreement are beneficial to the group and will help to expand its recurring income base in the Netherlands," the group told The Business Times.
Dutch-based hotel developer, investor and management group Borealis Hotel Group focuses on the hospitality and leisure market in major capital cities. The company currently develops projects of Hilton, IHG, Accor and Marriott in Amsterdam, Antwerp, Brussels, The Hague, Paris and Utrecht.
The vendor Hoog Catharijne Mall of the Netherlands is a wholly-owned unit of Klépierre. The company is listed on the Euronext Paris, and it maintains a substantial presence in continental Europe's retail property market with shopping centers in 57 cities and 16 countries.