Shepherd and Wedderburn acts for Safestay in debt restructuring
Shepherd and Wedderburn has helped Safestay plc release cash from two of its properties in Edinburgh and London as part of a £12.6 million transaction.
It also acted on behalf of the firm, which is best-known for its tourist accommodation in city centre hostels throughout Europe, as part of its £18.4 million debt restructuring and refinancing with HSBC.
Scott Ritchie, who is a partner in Shepherd and Wedderburn’s Real Estate team, said: “The combined drive and ambition of Safestay is truly impressive, and we are delighted to have assisted the group in all aspects of their recent refinancing and sale and leaseback transactions, including real estate, banking and corporate tax.”
The hostel sales were to an institutional buyer in exchange for 150 year-geared ground rent leases. Safestay will continue to operate both hostels under long-term leaseholds while releasing the cash from the two properties.
Safestay Chairman Larry Lipman said: “These deals had many ‘moving parts’ and required end-to-end legal advice and support to conclude them. We were both pleased and impressed by Shepherd and Wedderburn’s multi-disciplinary team, and the expertise and project management adeptness they brought to ensure that all bases were covered quickly.”