Leading international law firm SJ Berwin has advised Raag Hotels Limited and Queensway Hotels in a joint venture with the Wellcome Trust, a global charitable foundation with an investment portfolio of approximately £16 billion, with the aim of expanding the footprint of the international brand of Tune Hotels.

Tune Hotels operate under the limited service model used by low cost airlines. The chain offers high quality rooms at low prices in destinations across the world. The shareholders have committed additional equity to fund the future roll out of more Tune Hotels in London taking the portfolio from the current 616 rooms to a target of 1,500 rooms.

Raag Hotels was set up in 2010 as a joint venture between interests associated with the Jivraj Family, Naguib Kheraj and private real estate group Mountgrange, to develop a portfolio of Tune Hotels in in key business and leisure locations across London. Mountgrange has now realised its investment in the business as part of the transaction.

SJ Berwin acted as lead advisor to Raag Hotels Limited and Queensway Hotels on all corporate and tax aspects of the transaction. The team was led by Corporate partner Delphine Currie, alongside Tax partner Heather Corben and assisted by Corporate associates Barri Mendelsohn and Elizabeth Calvert and Tax associate Samantha Coleman.

Naushad Jivraj, CEO of Queensway Hotels said: “We are delighted to form this new joint venture with the Wellcome Trust, an institution which has a most distinguished track record and reputation as a long term investor.”

Delphine Currie, Corporate partner at SJ Berwin said: “This was a complex transaction involving a reorganisation of the group, new equity and debt funding, the exit of Mountgrange and the entry of the Wellcome Trust, all within a tight timeframe, which was successfully achieved. SJ Berwin is very active in the hotels sector and it was rewarding to use our expertise to assist our clients in the expansion of a business that is clearly going from strength to strength."