Safestay Signs Venice Hostel Development Joint Venture With EOS

(Alliance News) - Hostel operator Safestay PLC said Tuesday it signed a joint venture with EOS Sicav PLC to develop a 660 bed hostel in the Italian city of Venice.

Under the EUR2.1 million deal, Safestay will hold a 50% interest in the freehold site for the development as well as be responsible for half of the development costs for the site. Currently, development costs are expected to be around EUR5.0 million.

Safestay said the 6,000 square metre site was located a short walk from the Mestre rail station. Construction is expected to begin in 2020 and Safestay will become the sole leasee on completion.

"Acquiring a site for a substantial hostel in Venice is a great opportunity for Safestay," Safestay Chair Larry Lipman said. "We have been working closely with EOS Sicav for some time to achieve this, as the potential is clear and the number of similar opportunities are few."

"This is also our second site in Italy following the acquisition of Safestay Pisa earlier this year," Lipman added. "Italy is a natural market for us and we are continuing to look for similar opportunities in the other popular Italian cities."

Shares in Safestay were 3.2% lower at 30.50 pence in London on Tuesday.

By Ahren Lester; ahrenlester@alliancenews.com

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