Britain's richest investors are negotiating with the owners of Pacha, the Ibizan club that became one of the hottest nightclubs in the world during the 1990s.
Sky News understands that the Reuben brothers have reached a sale and lease agreement with the Pacha Group, with which they acquired El Hotel Pacha, a 57-suite residence on the Balearic Island.
Sources said the real estate transaction took place alongside a strategic partnership between Reubens and Pacha Group to facilitate the launch of Pacha-branded hotels and restaurants worldwide.
The original ownership of the Ibiza nightclub, opened in 1973, is not part of the deal.
The purchase is the latest to be sealed by the expanding Reuben family empire of properties.
Estimated by this year's Sunday Times Rich List at over £ 18.6 billion, they have built a vast business conglomerate, including real estate assets, data centers, technology company holdings, and leisure and aviation interests.
Reubens hotel interests include The Curtain in Shoreditch, the Experimental Chalet Verbier, which includes the famous Farm Club, and the Palazzo Experimental Venice.
More recent acquisitions include a hotel in Mykonos and a property in the historic center of Rome that will be transformed into a luxury hotel in Corinthia.
The Pacha Group transaction is Reubens' third investment in Ibiza and extends the nearly 10 km of coastline they already have at sunset beaches in the Cala Comte area on the west coast of the island.
Under the agreement, Reubens will upgrade and renovate the existing property of El Hotel Pacha, with the expectation that an adjacent car park will also be transformed into an adjacent hotel.
The deal comes just weeks after Reubens stepped in to provide a £ 80 million bridge loan to facilitate the conversion of London's Admiralty Arch into a luxury hotel.
Other family investments include Arena Leisure, the racing group, the London Heliport at Battersea and a small stake in Metro Bank, the struggling lender on the streets.
In real estate, the brothers own the In & Out Club and Grade II Listed Burlington Arcade in Piccadilly and the John Lewis Partnership headquarters near Victoria.
The Reubens declined to comment through a spokesman on Monday.