News | Finance
Wednesday 16th May 2007
Leading European law firm SJ Berwin LLP is advising Vector Hospitality plc, a newly created hotel group on its £2.64 billion IPO on the Official List of the London Stock Exchange, one of the biggest fundraisings seen on the London Stock Exchange by a real estate company. In a landmark listing, Vector Hospitality plc, the first non-conversion real estate investment trust (“REIT”) to be launched under the new REIT legislation introduced on 1 January 2007, will become the largest specialist real estate company listed on the market.
The new business is expected to raise approximately £2.64 billion of debt (consisting of listed convertible bonds and term loans) and equity through a global offering.
Vector Hospitality is being created by the contribution together of a significant portfolio of high-quality hotels by Royal Bank of Scotland, HBOS and AHG (the Alternative Hotel Group). The hotels (78 in total) include portfolios operated under the Hilton, DeVere, Malmaison and Hotel du Vin brands and four individual hotels being the Waldorf, the Cumberland, the Heathrow Park Inn and the V&A in Manchester. The group will be led by Richard Balfour-Lyn, CEO of MWB and former Hilton Hotels CEO, Sir David Michels.
The float will include a significant retail offer allowing ordinary investors to buy shares through IFAs.
SJ Berwin advised on the establishment and structuring of the REIT, the negotiations to acquire the 78 hotels, setting up the investment management arrangements with its investment manager Cameron Investment Managers and overseeing all the contractual documentation with its operational asset manager, Vision Asset Management Co. Limited, as well as the listing itself.
The SJ Berwin team was led by corporate real estate partner David Ryland, supported by corporate partners Delphine Currie and Peter Anderson; real estate partners Rob Thompson, Ed Page, Jeff Smith, Stephen Willson and Pat Ryan; tax partner Adrian Brettell; finance partners Nathan Briner and Gillian Smith and capital markets partner Brian Carne. Associates Sue Davidson and Emily Peters advised on environmental issues. Senior corporate associates involved in the transaction were Bayo Odubeko and Toby Dean. Senior real estate associates included Helen Murcott, Darren Rogers, Rupert Dowdell and Robert Kilgour and construction associates Julie Stagg and David Parton.
Other law firms advising are: Linklaters (Deutsche Bank), Berwin Leighton Paisner (Royal Bank of Scotland), Dickson Minto (HBOS), DLA Piper (Alternative Hotel Group, Cameron Investment Managers LLP), Taylor Wessing (Vision Hospitality Asset Management) and Clifford Chance (Royal Bank of Scotland and HBOS as lenders.)
David Ryland commented, “This is a landmark deal both in terms of size and innovation. Vector is the first non conversion REIT in the UK to be listed on the stock exchange and will be the largest listed hospitality real estate company. The transaction gave rise to a wide range of new issues which required creative and innovative solutions.”
For further information please contact:
David Ryland on +44 (0)20 7111 2252, email david.ryland@sjberwin.com or Delphine Currie on +44 (0)20 7111 2514, email delphine.currie@sjberwin.com or Karen Roberts on +44 (0)20 7111 2578, email karen.roberts@sjberwin.com or Aurelia Spivey on +44 (0)20 7111 2060, email aurelia.spivey@sjberwin.com
Notes:
- On 1 June 2005 SJ Berwin LLP, an English limited liability partnership, took over the business of the SJ Berwin general partnership. SJ Berwin LLP or an affiliated undertaking has an office in Berlin, Brussels, Frankfurt, London, Madrid, Milan, Munich , Paris and Turin.
- SJ Berwin LLP was named ‘UK Firm of the Year’ at the 2005 Legal Week Awards on 30 November. The award recognised SJ Berwin’s five years of international expansion and its involvement in a series of high quality deals.
- SJ Berwin's Real Estate Division totals 118 staff in London of which 23 are partners (3 of which are tax partners), and 50 associates, encompassing the disciplines of Commercial Real Estate, Construction, Planning & Environment, Property Litigation, Real Estate Funds and Tax. There is an increasing emphasis on cross firm activity with related areas of Banking and Corporate. The division acts for blue chip clients including British Land, Royal Bank of Scotland, the Hilton Group, Brixton plc, AXA, The Crown Estate, Marks & Spencer and Gazeley. There are in addition 3 dedicated European real estate partners.
- The Real Estate Team was Legal Business Real Estate Team of the Year 2005.
- With more than 200 corporate finance lawyers, the depth and breadth of expertise of our pan-European Corporate Finance Department is considerable. We offer the complete range of corporate finance services, which extends to all aspects of domestic and cross-border M&A and buy-outs, private equity, equity capital markets, financial services and tax.
- The corporate team has won a number of recent awards including:
o Fund Formation Team of the Year” 2006 at the Financial News Awards for Excellence in Private Equity Advisory Services,
o “European Law Firm of the Year" 2004 - 2006 at the EVCA/Real Deals European Private Equity Awards,
o ”European Law Firm of the Year" (fund formation) 2001 - 2007 by subscribers to PrivateEquityOnline and Private Equity International
o "Private Equity Law Firm of the Year" 2004 - 2007 at the European Venture Capital journal awards 2004
o "LBO Firm of the Year" 2004 at the Finance and Law Awards in Paris
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