Thursday 22 March 2018

Paddy McKillen repays IBRC debt, secures stake in three luxury London hotels

Belfast developer Paddy McKillen
Belfast developer Paddy McKillen
Ailish O'Hora

Ailish O'Hora

DEVELOPER Paddy McKillen has repaid his loans to IBRC and has agreed a deal with Colony Capital which will secure his stake in three luxury London hotels.

It is understood he paid back about €800m in total - this includes both personal and corporate loans.

As part of the deal, he has agreed to a long-term financial partnership with Tom Barrack’s private international investment firm, Colony Capital.

This company will refinance, on a long-term basis, loans secured in part by McKillen’s 36.2pc stake in Coroin – the company that owns and manages Claridge’s, The Connaught and The Berkeley hotels in London.

The move follows on ongoing takeover row with the UK-based Barclay brothers over the hotels.

“I am delighted to have agreed to a long-term funding agreement with Colony Capital that puts the emergency liquidation of IBRC saga behind us," he said today.

"I remain the largest shareholder in Coroin and today’s deal takes my stake in the hotels firmly out of the reach of the Barclay Brothers who will now not be able to succeed with the hostile take-over of the hotels they launched over three years ago.”

The new financing relationship will assure a comprehensive recapitalisation of McKillen’s balance sheet as well as an ongoing funding source for future capital deployment opportunities McKillen possesses and develops.

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