{"id":121436,"date":"2017-12-11T00:00:00","date_gmt":"2017-12-10T22:00:00","guid":{"rendered":"https:\/\/rhn.ro\/american-investment-fund-cerberus-is-the-co-owner-of-the-radisson-hotel-complex-in-bucharest\/"},"modified":"2026-03-28T11:54:41","modified_gmt":"2026-03-28T09:54:41","slug":"american-investment-fund-cerberus-is-the-co-owner-of-the-radisson-hotel-complex-in-bucharest","status":"publish","type":"post","link":"https:\/\/rhn.ro\/en\/american-investment-fund-cerberus-is-the-co-owner-of-the-radisson-hotel-complex-in-bucharest\/","title":{"rendered":"American investment fund Cerberus is the co-owner of the Radisson hotel complex in Bucharest"},"content":{"rendered":"
The American investment fund Cerberus is one of the buyers of the Radisson hotel complex in Bucharest. Also involved in the acquisition is the investment fund Revetas Capital, which owns the Vitantis shopping center in the capital.<\/div>\n
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The American investment fund Cerberus is one of the world’s largest private equity managers, managing over USD 30 billion together with its affiliates.<\/div>\n
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Cerberus representatives could not be reached for comment on the transaction by the time this article was published.<\/div>\n
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On November 29, 2017, the Israeli group Elbit Imaging announced that it had signed a definitive sale-purchase agreement with two international investment funds for a 98.2% stake in the company owning the Radisson hotel complex in Bucharest, a deal valued at EUR 169.2 million. Elbit estimated then that it would receive a net amount of EUR 81 million from the transaction, of which EUR 8 million is to be allocated as a 3-year loan at an interest rate of 5% per year.<\/div>\n
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The loan will act as security for the SPV’s customary closing obligations, through which the buyer can offset adjudicated losses that might be incurred as a result of a breach of warranties or certain indemnities granted by the seller under the terms of the agreement. Additionally, Elbit provided a letter of guarantee in favor of the buyer, under which it committed to fulfilling the vendor’s commitments and obligations according to the agreement. At this stage, there can be no certainty that the condition precedent will be met in a timely manner or that the transaction will be successfully completed, the seller states.<\/div>\n
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The transaction was subject to the fulfillment of certain conditions precedent, including the buyer obtaining external financing.<\/div>\n
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The net amounts obtained from the transaction after offsetting the bank loan of the sold company, working capital, and other adjustments, as well as transaction expenses, are expected to be approximately EUR 81 million, which represents the money the seller estimates it will receive from the deal.<\/div>\n
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The Radisson complex features 763 rooms and consists of a 5-star Radisson Blu hotel with 487 rooms, a 4-star Park Inn hotel with 276 rooms, and a 7,200 sqm commercial gallery that includes Bucharest’s largest casino, a fitness center, and shops.<\/div>\n
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The Radisson Blu and Park Inn hotels are managed under a long-term management contract concluded until 2036 with Rezidor, part of the Carlson Rezidor Hotel Group.<\/div>\n
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In 2016, the Radisson complex in Bucharest recorded total revenues of EUR 31.6 million and an EBITDA (earnings before interest, taxes, depreciation, and amortization) of EUR 13.9 million, according to data from the parent company.<\/div>\n
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Of the market value of the Radisson Bucharest complex, more than half, approximately EUR 92 million, represents a bank loan taken from Raiffeisen. Additionally, the seller of the Radisson had to repay EUR 12.65 million to the Israeli bank Hapoalim by November 22, 2017, and, according to a recent agreement, will pay EUR 1 million by December 27, 2017, with the remainder by January 31, 2018. Any proceeds from the sale of the Radisson or other sources will go toward repaying the loan to Hapoalim, which carries an interest rate of 4.65% + LIBOR (London Interbank Offered Rate).<\/div>\n
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The Israeli group Elbit Imaging’s main shareholders are York Capital and its affiliates, holding 19.6%, and Davidson-Kempner and its affiliates with approximately 14.3%.<\/div>\n
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Cerberus’s acquisition partner for Radisson Bucharest, Revetas Capital, is relying on its new investment fund, Revetas Capital Fund II, which raised EUR 63 million from investors at its first closing, aiming for investor commitments of EUR 200 million and a capital cap of EUR 300 million.<\/div>\n

Source: Mirsanu – Jurnalul de Tranzactii<\/a><\/p>\n

Frequently Asked Questions<\/h3>\n

Who bought the Radisson hotel complex in Bucharest?<\/strong><\/p>\n

The complex was acquired by the American investment fund Cerberus Capital Management in partnership with Revetas Capital.<\/p>\n

What was the total value of the Radisson Bucharest transaction?<\/strong><\/p>\n

The transaction for a 98.2% stake in the company owning the complex was valued at EUR 169.2 million.<\/p>\n

What assets are included in the Radisson Bucharest complex?<\/strong><\/p>\n

The complex includes the 5-star Radisson Blu hotel, the 4-star Park Inn hotel, and a 7,200 sqm commercial gallery featuring a casino and fitness center.<\/p>\n","protected":false},"excerpt":{"rendered":"

The American investment fund Cerberus is one of the buyers of the Radisson hotel complex in Bucharest. Also involved in the acquisition is the investment fund Revetas Capital, which owns the Vitantis shopping center in the capital. The American investment fund Cerberus is one of the world’s largest private equity managers, managing over USD 30…<\/p>\n","protected":false},"author":0,"featured_media":67002,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2859],"tags":[],"thb-sponsors":[],"class_list":["post-121436","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stirea-editiei-en"],"article_style_override":"","post-style":"","post_via":"","post-top-image":"https:\/\/rhn.ro\/wp-content\/uploads\/2020\/02\/topstory.jpg","_links":{"self":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/121436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/comments?post=121436"}],"version-history":[{"count":0,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/121436\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media\/67002"}],"wp:attachment":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media?parent=121436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/categories?post=121436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/tags?post=121436"},{"taxonomy":"thb-sponsors","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/thb-sponsors?post=121436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}