$667m hotel deal pushes through with aid from K&L Gates and Arnold Bloch Leibler

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Two top commercial firms have acted in the acquisition of the Redcape Hotel Group by a Moelis Australia-managed fund from its US hedge fund owners.

K&L Gates and Arnold Bloch Leibler (ABL) acted in the $677m deal, which ends the six-year investment of Värde Investment Partners and York Capital Management in the company. K&L Gates acted for Moelis while ABL acted for Värde and York.

The deal for Redcape, one of Australia’s largest hotel operators with 25 properties in New South Wales and Queensland, is expected to close this month. Värde senior managing director Haseeb Malik said that the hotel and pub market in the country continues to be strong.

K&L Gates fielded lawyers from across multiple practice areas, including corporate, investment management, property, and banking. Its team, which also formed the Moelis Australia Redcape Hotel Group, was led by corporate and transactional partner Hal Lloyd, and included Matthew Watts, investment management partner; Diane Skapinker, real estate partner;  and Matthew Cridland, tax partner. Special counsel Brent Delaney, Vicki Aron, Zina Edwards, and Ben Benson, and lawyers Jessica Tang, Mairead Murphy, Robyn Dimis, and Edward Ryman also advised on the deal.

ABL was involved in the initial distressed debt-for-equity restructure and scheme of arrangement process that took place for the then ASX-listed Redcape Property Trust six years ago. For this latest deal, the firm fielded a team led by banking and finance partner Ben Mahoney and senior associate Daniel Mote. The team also included senior associates Andrea Towson and Dorian Henneron.

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