Queensgate Investments Fuels Generator with €215m Refinancing DealProperty Week
Private equity real estate fund manager Queensgate Investments has completed a €215m (£190m) refinancing of Generator Hostels seven months after buying the business for €450m.
The financing, which covers 10 jurisdictions and is provided by Société Générale and HSBC, is in the form of a five-year loan. It replaces a “low quantum” of leverage from several institutions that Queensgate inherited following the deal to acquire Generator from Patron Capital. Queensgate said it elected to refinance the portfolio in order to invest in new freehold assets and enhance existing products and services. The deal would also help it capitalise on various value-enhancing operational initiatives, it added.
“Société Générale and HSBC have crafted a flexible and competitive refinancing package that highlights our privileged relationship with both lenders,” said Jason Kow, chief executive of Queensgate.
Expanding the portfolio
At the time of the acquisition in May, Queensgate said it would invest at least €300m expanding the portfolio, particularly in the States.
There are currently 14 hostels in the Generator portfolio, comprising 8,639 beds spread across 12 European cities and one US city – Miami.
The company’s revenues are reported to be more than €70m. In May, Queensgate appointed Alastair Thomann as chief executive of Generator.
He was previously chief executive of Penta Hotels, which operates 27 hotels across the globe, targeting a similar young demographic to Generator.
Thomann’s former colleague at Penta, Andre Guettouche, was named Generator’s chief operating officer.
Generator’s hostels are known for their strikingly designed interiors and large shared spaces.