Hotel Cerretani Firenze ‐ Mgallery
- Property Details
Property Details [ – ]
|Number of Guest rooms||86|
|Number of F&B Outlets||Two outlets comprising "Il Patio" Restaurant (which serves breakfast buffet) and "Il Michelangelo" Bar|
|Land area||~1,350.0 sq m|
|Purchase price at 27 November 2018||€40.6 million (1)|
|Valuation (2) as at 31 December 2020||€40.4 million|
Master Lease Details [ – ]
|Master lessee||FC Operations Hotel SRL, affiliated to EVENT Hotels|
|Term of lease||20 years commencing from 27 November 2018|
|Minimum rental income||€1.3 million (3)|
- (1)The purchase price of €40.6 million is based on H-REIT's effective 95.0% interest in Hotel Cerretani Firenze and the furniture, fixture and equipment. This excludes the adjustment for net working capital. On the basis of 100% interest, the purchase price is €42.7 million.
- (2)The property was valued by Cushman & Wakefield (U.K.) LLP (Italian Branch) using the Discounted Cash Flow approach.
- (3)Due to the COVID–19 pandemic, a temporary 5-year rent abatement agreement for Hotel Cerretani Firenze was signed in December 2020 ("Temporary Arrangement"). Pursuant to the Temporary Arrangement, from 2020 to 2024, the annual base rent level of the hotel has been reduced, starting with €0.2 million in 2020, stepping up annually to a base rent level of €0.9 million in 2024, before reverting to the original base rent level of €1.3 million per annum in 2025. Under FRS 116 / SFRS(I) 16 Leases, the rental income under this lease modification will be accounted for on a straight-line basis over the remaining lease tenure at S$1.7 million (€1.1 million) per annum. Under the Temporary Arrangement, between March 2020 to December 2024 (the "Restructured Term"), after paying for its rent obligations and relevant hotel related expenses, any losses suffered by the lessee during the Restructured Term will be first funded by the lessee, but the lessee will be allowed to clawback the cumulative losses incurred from future variable rent payment obligations. The variable rent formula remains unchanged throughout the Restructured Term or after, except that variable rent will be suspended until the cumulative losses are clawbacked by the lessee. As soon as the cumulative losses are fully clawed back, the lessor shall be entitled to receive the variable rent thereafter. Lowering the base rent level in the five-year period serves to lower the level of cumulative losses suffered by the lessee and hence lower the amount of clawbacks from future available variable rent. The rationale for the Temporary Arrangement is for business continuity and working together with the lessees is important to navigate the hotel out of the crisis successfully.
- (4)Based on the average exchange rate of €1.00 = S$1.5708.
Via de' Cerretani 68, 50123 Florence, Italy
~1,350 sq m
Hotel Cerretani Firenze – MGallery is a 4-star hotel with 86 rooms. The hotel is located in an exceptional location in the heart of Florence's historic city, within walking distance to famous tourist attractions including the Cathedral of Santa Maria del Fiore (Il Duomo), Basilica of Santa Croce, Piazza della Signoria and Ponte Vecchio. Museums in the vicinity such as the Uffizi Gallery and the Accademia Gallery house some of the most important works of the Renaissance, such as those by Leonardo da Vinci, Botticelli and Michelangelo.
The main train station "Santa Maria Novella", is only a 8-minute walk from the hotel while Florence International Airport is also easily accessible via a relatively short 15 to 25-minute drive or 20 minutes by tram.
The "Il Patio" Restaurant is an intimate venue that serves breakfast and afternoon Tea-Time. The "Il Michelangelo" Bar offers a wide selection of regional wines, cocktails, appetizers and typical Tuscan dishes.
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