PPHE has acquired from its joint venture partner its 50% interest in W29 Development, a Delaware limited liability company (JV company), for a total consideration of US$3.3m plus associated acquisition costs. Therefore, the company presently owns 100% of the JV company and the associated joint venture arrangements have been terminated.
The acquisition was funded from the company’s existing cash resources. Following completion of the acquisition, the total investment by PPHE in the project is US$43.0m.
The JV company owns the properties located at 538, 540 and 542 West 29th Street, New York. The company plans to develop its first art’otel in New York and will progress the next stage of the development of the property to facilitate this.
Boris Ivesha, President and CEO of PPHE, commented: “This acquisition enables PPHE to fully control the design and construction process of what will be our first hotel in New York. We are excited about bringing our art’otel brand to New York and will utilise our 30-year track record to ensure we create value for our shareholders and offer guests a fantastic new destination expected in 2023.”