US: PPHE has entered into a sale agreement for what would have been its first development in the United States, located in Manhattan, New York.
The Hudson Yards development site was acquired in 2019. PPHE intended to develop a hotel and condominiums on the site, but now is looking to separate the property from its portfolio.
PPHE said that regulatory changes established after its acquisition pushed the group away from its plans. The real estate firm now looks to exit the property at a sale price of around $33.5 million, with roughly $8.3 million of that going to repay debt.
“We are pleased to exit this longstanding development site near Hudson Yards in New York, which demonstrates the group’s focus on and the proactive pursuit of its strategy,” PPHE co-CEO Greg Hegarty said. “The site was acquired in 2019 with the intention of developing a hotel and condominiums. However, with the significant changes to the regulatory landscape following acquisition, we believe this disposal presents an opportunity for us to release capital, which can be redeployed into our core geographic regions.”
Highlights:
- PPHE Hotel Group has entered into a sale agreement for its Manhattan development site near Hudson Yards, acquired in 2019 with plans for a hotel and condominiums, at a price of $33.5 million.
- The company stated that regulatory changes implemented after the acquisition have led it to abandon its original development plans and exit the property, with roughly $8.3 million of the proceeds allocated to debt repayment.
- PPHE co-CEO Greg Hegarty characterised the disposal as an opportunity to release capital for redeployment into the group’s core geographic regions.
