The hotels were acquired for the Peninsula Real Estate Fund I LP, an equity fund of Anglo Irish Bank Private Banking and Timothy Haskins. "This fund provides our Irish investors with an attractive investment opportunity to participate in the value created by renovating and repositioning these major hotel assets in Manhattan," says Peter Butler, managing director of Anglo Irish Bank Private Banking, in a statement.
The renovations and repositioning of the property should begin sometime during the first quarter 2007, Byrne tells GlobeSt.com. While the budget is still in the working stages, he estimates the company will spend about $40 million on the renovations.
Renovations will take place at both hotels over the next 18 to 24 months and will be overseen by Haskins, who is the operating partner of the fund. The landmark Beekman Tower, at 3 Mitchell Place, was built in 1928 and contains 172 keys. The Eastgate Tower Hotel, at 222 E. 39 St., has 187 rooms. It was built in 1971.
As of now, Anglo Irish Bank has no other acquisition in the queue, but Byrne says, "The bank and its partners would always be looking for opportunities to invest [in Manhattan]. There are no immediate plans, but we are certainly looking and continuing to look for value-add investments."
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