Safestay PLC Acquisition (3703N)
24 Settembre 2019 - 8:00AM
UK Regulatory
TIDMSSTY
RNS Number : 3703N
Safestay PLC
24 September 2019
24 September 2019
Safestay plc
("Safestay", the "Company" or the "Group")
Joint Venture Partnership to develop 660 bed Venice Hostel
Safestay (AIM: SSTY), the owner and operator of an international
brand of contemporary hostels, is pleased to announce that it has
entered into a joint venture partnership with EOS Sicav plc to
develop a 660 bed hostel in Venice. Safestay will acquire 50% of
the freehold site for EUR2.1 million and share the development
costs of building the hostel on a 50:50 basis.
The site covers 6,000 sqm and is located on Via Fratelli
Bandiera, a very short walk from the main railway terminal, Mestre
Station. Construction is scheduled to begin in 2020 once final
licensing is confirmed. Safestay's share of the development costs
are expected to be approximately EUR5.0 million and once completed,
Safestay will lease the hostel from the joint venture partnership
and be the sole operator.
Venice is undoubtedly one of Europe's most iconic cities
attracting over 14 million visitors throughout the year and thereby
providing year round revenues from tourism.
Given the popularity of the city, Venice is still relatively
under served in terms of number of hostel beds. As a consequence,
to have secured a site to develop a 660 bed hostel in such a good
market is a very strong addition to the Safestay portfolio and once
completed it will be a significant contributor to the Group's
future profitability.
The property is freehold and the total consideration of EUR2.1
million for 50% of the site will be satisfied from the Group's
existing cash resources.
Following this acquisition, the Group's portfolio consists
of:
-- 5 sites in the UK: Glasgow, Edinburgh, York and two in London
-- 11 sites in Europe: Brussels, Lisbon, Madrid, Paris (under
construction), Pisa, Prague, Vienna, Venice and three in
Barcelona
-- Approximately 4,200 beds across all 16 hostels (once fully developed)
Larry Lipman, Chairman of Safestay, said:
"Acquiring a site for a substantial hostel in Venice is a great
opportunity for Safestay. We have been working closely with EOS
Sicav plc for some time to achieve this, as the potential is clear
and the number of similar opportunities are few.
This is also our second site in Italy following the acquisition
of Safestay Pisa earlier this year. Italy is a natural market for
us and we are continuing to look for similar opportunities in the
other popular Italian cities."
Enquiries
Safestay plc +44 (0) 20 8815 1600
Larry Lipman
Canaccord Genuity Limited
(Nominated Adviser and Broker) +44 (0) 20 7523 8000
Bobbie Hilliam
Novella +44 (0) 20 3151 7008
Tim Robertson
Fergus Young
For more information visit our:
Website www.safestay.com
Vox Markets page
https://www.voxmarkets.co.uk/company/SSTY/news/
Instagram page www.instagram.com/safestayhostels/
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END
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