Safestay PLC Acquisition (8753J)
July 03 2017 - 2:00AM
UK Regulatory
TIDMSSTY
RNS Number : 8753J
Safestay PLC
03 July 2017
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR").
3 July 2017
Safestay plc
("Safestay", the "Company" or the "Group")
Acquisition of Second Barcelona Hostel
Safestay (AIM: SSTY), the owner and operator of a new brand of
contemporary hostel, is pleased to announce it has acquired a
second Barcelona hostel from Equity Point Hostels ("Equity Point")
for EUR2.0 million in cash. On 31 May 2017, Safestay announced it
had agreed to acquire three hostels from Equity Point located in
Lisbon, Prague and Barcelona.
The acquisition of this second hostel in Barcelona, known as
Barcelona Gothic, from Equity Point will mean the Group now has 11
hostels within the portfolio. Situated in the Gothic Quarter,
Barcelona Gothic is 150 yards from the Picasso Museum and a
5-minute walk to Barcelona's well known central street Las Ramblas.
A leasehold site with 24 years remaining, the hostel offers 144
beds and has significant communal spaces with the potential to be
further enhanced. Together with the Group's first Barcelona hostel,
Safestay now has 254 beds in this famous City.
For the financial year ended 31 December 2016, the Barcelona
Gothic hostel generated sales of EUR0.7 million and EBITDA of
EUR0.2 million. The consideration will be paid in cash from the
Company's current cash resources. The Group has now invested
EUR8.6m in recent European acquisitions following the gross GBP12.6
million sale and leaseback transaction completed in April 2017.
The Company is also pleased to announce that the first
transaction agreed with Equity Point announced on 31 May 2017 has
completed. As a result, the EUR3.6 million loan was redeemed and
ownership of the three hostels in Lisbon, Prague and Barcelona have
been transferred to Safestay.
Larry Lipman, Chairman of Safestay, said:
"Barcelona Gothic is an attractive contemporary hostel located
in the heart of one of Europe's most popular cities to visit. There
is no requirement for significant additional investment instead the
focus will be to integrate the site into the business under the
Safestay brand and together with our other Barcelona hostel which
is located next to the beach we will look to build upon an already
established revenue stream.
The last 3 months have been transformative for our business,
beginning with the debt refinancing and sale and leaseback
transaction in April which released capital from within the
business to support the expansion of our portfolio from 4 to 11
hostels and increasing the number of beds in our portfolio from
1,526 to 2,472 plus 34 apartments. We look forward to providing a
more detailed update on the acquisitions we have made with the
announcement of our half-year results in September."
- ENDS -
Enquiries
+44 (0) 20 8815
Safestay plc 1600
Larry Lipman, Chairman
Canaccord Genuity Limited +44 (0) 20 7523
(Nominated Adviser and Broker) 8000
Bruce Garrow
Chris Connors
Ben Griffiths
Novella
+44 (0) 20 3151
Tim Robertson 7008
Toby Andrews
For more information visit: www.safestay.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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