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Hilco Real Estate Finance (HREF) has revealed that it has completed the £12m refinance of a prominent Heathrow hotel.
The 18-month term allows 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-bedroom property is currently undergoing a programme of investment with a new operating agreement set to come into place as part of a broader plan to enhance the customer value proposition in the highly competitive hotel market serving London’s Heathrow airport.
HREF was able to turn the loan around rapidly to meet the borrower’s deadlines, moving from initial engagement to funds being transferred in just over three weeks.
Sean Adams, managing director of HREF, 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.”
Valuations for the transaction were undertaken by Cushman and Wakefield, and legal due diligence was provided by Trowers and Hamlin in London.
This latest bridging deal comes just two weeks after HREF completed a £24m deal to enable a West Midlands investor to finance the purchase of two residential blocks, and follows £44m of lending in February.
