NoMad Hotel secures £73m refinancing loan
The building was formerly Bow Street Magistrates Court and Police Station and saw the likes of Oscar Wilde, Emmeline Pankhurst and The Kray Twins pass through
The NoMad Hotel in London’s Covent Garden has secured a £73m refinancing loan from specialist lender Cohort Capital.
The bespoke debt facility, provided by Cohort, was used to refinance a syndicate of banks whose loan term was approaching expiry.
The 91-key hotel will continue to be operated by Sydell Group, which operates the US-based NoMad and other branded hotels, under a management agreement.
The Grade II listed building underwent a full refurbishment program in 2018-20, converting the 170,000 sq ft building into a hotel, restaurant, museum and bar in an effort led by Sydell.
The building was formerly Bow Street Magistrates Court and Police Station and saw the likes of Oscar Wilde, Emmeline Pankhurst and The Kray Twins pass through.
Bal Sohal, executive chairman of Cohort Capital, said: “Our substantial private capital backing allows us to agree flexible debt structures for large loans where there is a credible sponsor – as is the case here.
“We are seeing much higher demand for private specialist outfits like Cohort Capital, as high street banks are increasingly offering unfavourable terms for refinancing or seeking to reduce their exposure to certain real estate sectors. The NoMad hotel is an iconic property that will continue to flourish in what is arguably London’s prime tourist and cultural hotspot.”
Matt Thame, CEO of Cohort Capital, added: “As banks retrench further from real estate debt markets, larger debt funds with flexible balance sheet solutions won’t get out of bed for anything less than £100 million. This has opened up a space in the property finance market where Cohort is staying very active.
“There is no doubt however that markets are contracting, and we can safely say the residential and commercial real estate sentiment is not yet on the up – which is why we are remaining extra selective on the sponsor, strategy and location of the asset. The hotel room performance at the NoMad is strong, and the F&B concept and plan is a compelling one.”
