The deal, which includes the hotel’s operating company, Harrop Hotels, was signed for £2.9m.
Connection Capital clients have invested £2.05m of equity, while the new management team, Longrose Buccleuch Management and previous Opco owner are providing the remainder of the equity. Santander is providing a further £1.7m as a loan facility.
Claire Madden, founding partner, Connection Capital, said, “This is an excellent investment for our clients particularly as the new management team has a strong business plan for growth. This will be supported by a major refurbishment and rebrand which will undoubtedly drive more long term value in the business”
Connection Capital is a private client investment business launched in 2010. It provides investors with the ability to invest on a deal by deal basis as part of an organised syndicate. It has £135m of funds under management. Earlier this month it completed the £9m management buy-out of TeamSport Racing, the largest operator of go-kart tracks in Europe.
Riverside Capital specialises in property investment and asset management. The business manages property assets with a value of more than £385m across commercial offices, industrial, hotels, residential, ground rents and wind farms in the UK and Channel Islands.
In 2012, in a 50:50 joint venture, Connection Capital and Riverside Capital acquired the business and assets of Hotbed, at the time the UK’s largest high net worth property and private equity syndication business.
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