U.S. investment fund Cerberus buys Bucharest's Radisson hotel complex

Back in August, Israeli group Elbit Imaging signed a letter of intent to sell its majority stake in the company that owns the Radisson hotel complex in Bucharest to an international investment fund. Now, U.S. investment fund Cerberus is set to acquire the complex.

The investment fund Revetas Capital, which owns the Vitantis shopping center in Bucharest, is also involved in the deal.

Elbow announced in late November that it had signed a definitive sale-purchase agreement with two international investment funds for a 98.2-percent stake in the company that owns the Bucharest property. The deal was reportedly valued at €169.2 million. The seller then estimated that it would receive a net amount of €81 million from the transaction, of which €8 million will be granted to the buyer through a three-year vendor credit at a 5-percent interest rate per year.

The Radisson complex is located in central Bucharest and includes the 487-guestroom Radisson Blu hotel, the 276-guestroom Park Inn Hotel and the biggest casino in the city. Both hotels are managed by Rezidor, part of Carlson Rezidor Hotel Group.

Bucuresti Turism, the company that owns the two hotels, is one of the biggest hotel companies in Romania. It had a turnover of €31.1 million and a net profit of €2.57 million in 2016, according to the Finance Ministry.

Cerberus is one of the largest private equity managers in the world, managing more than $30 billion together with its shareholders.