The 18-month term will allow the borrower to stabilise the asset while it transitions from a long-term government contract to operate under an internationally recognised hotel brand.
The 178-room property is undergoing investment, with a new operating agreement aimed at strengthening its position in Heathrow’s competitive hospitality market.
HREF was able to turn the loan around quickly to meet the borrower’s deadlines, moving from initial engagement to funds being transferred in just over three weeks.
Valuations for the transaction were undertaken by Cushman & Wakefield, and legal due diligence was provided by Trowers & Hamlin in London.
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Sean Adams, managing director at HREF (pictured above), said: “We are delighted to have completed another hotel loan, this time in the highly attractive Heathrow market.
“This is the fourth hotel loan completion for HREF over the last 12 months and we see this as a sector where we can add real value, particularly to assets being transitioned between owners and between different brands.
“The sponsor in this case has a strong track record, and the asset is well positioned to take advantage of the growing market at the UK’s largest airport.”
This latest bridging deal follows HREF providing a £24m loan to fund the acquisition of two new-build residential blocks in Worcester.
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