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Barings Real Estate, part of Barings LLC, one of the world’s largest diversified real estate investment managers, announces that it has provided a £165 million loan secured against the Hotel Café Royal, the iconic 150-year old five-star luxury hotel in London’s West End.
The seven year, fixed rate first mortgage loan is secured against the 159-room hotel and includes 16,000 sq. ft. of retail space situated on the ground floor fronting Regent Street which is let to Nespresso, Lotus and Wolford. The loan, which represents a 47 per cent loan-to-value, will be used to refinance existing debt.
This financing means Barings’ European real estate debt team has underwritten loans over the last 12 months across the capital stack including senior debt, development financing and whole loans in a range of traditional and alternative real estate sectors including student housing and the private rented residential sector.
Chris Bates, Head of Real Estate Core Mortgage Europe at Barings Real Estate, said: “This is a rare opportunity to provide financing for one of London’s most iconic hotels, which attracts growing numbers of tourists visiting from across the globe. This transaction demonstrates Barings’ continued appetite for significant debt financings in the alternative sectors of the UK real estate market, as the team focuses on growing the platform.”
Barings Real Estate is part of Barings LLC, one of the world’s largest diversified real estate investment managers. The group is an active investor in private and public, equity and debt markets, and provides core, value-added, and opportunistic investment and advisory services to institutional and other qualified investors around the globe.