DLA Piper and Stephenson Harwood are among a clutch of firms to have won mandates on the Wellcome Trust's 50% acquisition of Raag Hotels.

Raag, which operates Tune Hotels' (pictured) City business, is forming a joint venture with the charity, with the ambition to more than double its presence in central London. 

Shareholders have committed extra equity to increase the portfolio from the current 616 rooms to a target of 1,500 rooms.

The hotels group has also acquired a new site in Canary Wharf, which has planning consent for the development of a 130 room hotel, expected to open in early 2015. 

SJ Berwin represented Raag on corporate elements with a team led by corporate partner Delphine Currie and tax partner Heather Corben.

GSC Solicitors' head of property finance Peter Belcher and property partner Matthew Phillips advised Raag on the construction, franchising and property refinancing aspects of the deal. 

Meanwhile, DLA Piper corporate partners John Gallon and Charles Severs represented the Wellcome Trust alongside real estate partner Tim Field. Currie said: "This was a complex transaction involving a reorganisation of the group; new equity and debt funding; the exit of [London property fund] Mountgrange; and the entry of the Wellcome Trust all within a tight timeframe, which was successfully achieved."

Bank finance for the development of the Raag Hotels business has been provided by HSBC and the Royal Bank of Scotland (RBS). 

HSBC instructed Stephenson Harwood, which fielded a team led by senior associate Kate George, who was supported by debt finance partner Neil Murray and real estate partner Robert Newman.

RBS turned to Simmons & Simmons finance partner John Hayward.