Quinlan Private is seeking to raise €400 million from private investors to fund the €1.165 billion takeover and expansion of Jurys Inns.
The Dublin private equity firm agreed the takeover of the hotel chain in June but has only started approaching its wealthy clients and institutions seeking equity for the deal within the last two weeks. The firm, which is led by financier Derek Quinlan, could afford to finance the deal with equity of €250-€300 million and borrowing, but it is seeking additional funds from investors to finance a large-scale expansion of the three-star chain into central and eastern Europe.
Quinlan has within the last fortnight received commitments from investors to cover half the €400 million required for the takeover and expansion.
The debt financing for the takeover of the chain is already in place. It is common for Quinlan Private to complete acquisitions quickly and then approach its client investors for equity.
The firm bought the Diagonal Mar Shopping Centre in Barcelona for more than €300 million in a transaction that was completed within a few weeks of it first approaching the vendor.
Quinlan Private afterwards secured equity for the acquisition from its investors.
It has been providing details of the expansion at investor roadshows over the last two weeks.
The firm declined to comment on the approaches to investors.
Quinlan Private decided to wait until this month to seek equity investors to avoid the quiet summer period when many of their wealthy clients were away.
There are 20 hotels in the Jurys Inns chain - 14 in the UK and six in Ireland - with 4,835 bedrooms. Jurys Inns had earnings before interest, tax, depreciation and amortisation of €60 million in 2006.
Quinlan Private is also seeking the funds for the planned expansion in Britain and Ireland.
Jurys management identified 50 locations in Britain suitable for three-star hotels.
Quinlan is already involved in the hotel sector in central and eastern Europe, with hotels including the Four Seasons in Prague and Budapest, and the Yasmin Hotels in central Europe.
Quinlan Private beat off competition for the Jurys Inns chain from Whitbread, the British owner of the budget Premier Travel Inns chain, and Lydian Capital, a Swiss investment vehicle backed by racehorse owners John Magnier and JP McManus, and former Kerry Group head Denis Brosnan.
Irish Life's newly created wealth management business has completed its first purchase - a 50 per cent stake in what will be, on completion, one of Rome's premier shopping centres.
It is understood that the new business has invested over €170 million for its 50 per cent stake in the Laurentino Shopping Centre development which it will shortly begin marketing to high net worth investors through an exclusive arrangement with the leading brokerage firm Invesco. The remaining 50 per cent has been purchased by leading German Fund DEGI which has €9 billion under assets.
