Investment entities affiliated with Starwood Capital Group and Jaws Mustang Acquisition today announced the signing of a non-binding letter of intent for a potential business combination.
The potential acquisition includes the interests in a portfolio of hotels comprised of the 1 Hotels properties in Manhattan and Brooklyn, and the De Vere Portfolio in the United Kingdom.
Under the terms of the LOI, the combined public company would become the direct or indirect owner of the Starwood Capital Entities’ interests in 10 properties:
- 1 Hotel Brooklyn Bridge – A waterfront retreat, with sweeping views of the East River and Manhattan skyline, and interiors featuring native greenery and reclaimed materials. This property comprises 195 guest rooms and suites.
- 1 Hotel Central Park – A New York City property, right off Central Park and steps from the heart of Manhattan. This property comprises 234 guest rooms and suites.
- The De Vere Portfolio – Spanning central London, outer London, Southern England, and Northern England, these eight historic country estates and houses comprise the De Vere Wokefield Estate, De Vere Latimer Estate, De Vere Beaumont Estate, De Vere Horsley Estate, De Vere Cranage Estate, De Vere Tortworth Court, De Vere Cotswold Water Park, and De Vere Grand Connaught Rooms. These properties comprise 1,871 guest rooms and suites.
It is estimated that the portfolio earned $52 million in net operating income at the property level for the year ended Dec. 31, and is projected to earn NOI at the property level of $62 million this year.
Santander US Capital Markets LLC is serving as equity capital markets advisor and financial advisor to Jaws.
Jaws Mustang shareholders last month approved a deadline extension to February 2025. After the redemptions and receipt of the first monthly extension deposit of $25,000 to the trust, the balance was just over $15.4 million. The SPAC originally raised $900 million in an IPO three years ago. Read more.
