Barings finances a London West End hotel with a £165m loan

Barings Real Estate has financed a luxury hotel in London’s West End with a £165m (€184.7m) loan facility.

Barings said the seven-year, fixed-rate first mortgage loan facility is secured against the Hotel Café Royal, a 150-year old five-star luxury hotel.

The loan, which represents a 47% 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, the head of real estate core mortgage Europe at Barings Real Estate, said: “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.”