UK property group MWB has reached agreement to extend the majority of a £282.5 mln (EUR 330 mln) facility for its boutique hotel business Malmaison to end-December 2014.

The refinancing was agreed with Bank of Scotland, Royal Bank of Scotland, and with Riverland, an associate of RBSM Investments.

Malmaison operators 26 hotels in the UK.
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MWB said that the refinancing, together with the £100 mln net proceeds from recently announced sale-and-leaseback transactions involving five hotels would reduce Malmaison's debt to some £180 mln.

MWB has also concluded a new shareholder agreement with RBSM, the present owner of 17.5% of Malmaison. Under the deal MWB will pay an increased preferred return to RBSM in exchange for 100% of the future residual economic value of the hotel business.