GRAFTON Group, a publicly quoted property company, has acquired the Rathmines Plaza Hotel, Dublin for £5.8 million from O'Dwyer Real Estate Company, on a sale and lease back basis.

The consideration is being financed by a non resource bank loan of £5 million and £0.8 million from internal sources. The rental agreement provides for an annual rent of £0.53 million over four years.

The agreement also includes a put option entitling Grafton to sell the property back to O'Dwyer Real Estate.