JAGA Group, the privately owned property group of Jon Adgemis and owner of Public Hospitality, has secured a major refinancing deal led by Deutsche Bank.
The refinancing was arranged by Archibald Capital and anchored by Deutsche Bank and GEMI Investments. This follows Muzinich & Co becoming a funder to key Public Hospitality Group properties in June.
The refinancing deal has been reported by several outlets to be valued at $400m.
“We are thrilled to have successfully secured this major refinancing,” stated Adgemis.
“This transaction underscores the confidence that our financial partners have in both our real estate assets and our long-term vision for the business. The strengthened financial foundation will allow us to accelerate our strategic initiatives, enhance our properties, and further elevate our exceptional property portfolio.”
Justin Epstein, executive director of GEMI Investments, was pleased with the refinancing arrangements.
“We are pleased to reach an acceptable position for our investors and to be working alongside Deutsche Bank, Archibald and JAGA/PHG.”
The announcement of the deals comes off the back of a turbulent 12 months for Public Hospitality, beginning with the announcement last year that Love Tilly Group was ending their partnership with Public. Less than a month ago, the Maybe Group also confirmed they had concluded their partnership with Public.
Refinance allows for a reset
Public Hospitality confirmed to Australian Hotelier in June that it would undergo a restructure.
Adgemis, who will focus on the development of JAGA properties moving forward, will shortly announce a new team to assume operational management of Public Hospitality venues.
The refinancing will assist the group restructure and stabilise the operating businesses to the benefit of all staff and suppliers. It will also enable the group to undertake significant property improvements to its Bondi, Darlinghurst, Balmain, Potts Point and Annandale hotels.
“I’d like to thank all our financial partners for their work and patience under challenging conditions,” stated Adgemis. “In particular, I want to thank our people and suppliers who have not only demonstrated incredible loyalty and resilience but are the best in the business.”
