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LONDON-Hotels operator Hilton has raised £335.7 million ($520 million) with the sale and leaseback of ten of its UK properties to a new limited partnership formed by Rotch, Farnsworth and the Bank of Scotland. Under the terms of the deal Hilton will itself take a 40% interest in the limited partnership for £25 million ($39 million).

Hilton will pay a rent based on an average of 28.8% of the hotels’ turnover, plus £3.1 million ($4.8 million) per annum, subject to a guaranteed minimum rent of £17.5 million ($27 million) per annum. The rent increases annually in line with the UK Retail price Index, but with a cap of 5%. If the hotels meet their budgeted rent this year the first year’s rent will be £23.6 million ($37 million).

Hilton Group Chief Executive David Michels said the move was “in line with our stated strategy and follows on from the successful transaction with the Royal Bank of Scotland last year. We are satisfied with the achieved price of £164,000 ($254,000) per room.”.

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