Wiesbaden-based Aareal Bank and private equity real estate investor Henderson Park have strengthened their partnership with a £275 mln (€330 mln) financing loan secured against three hotels in the UK and Ireland.
The Curio Collection Caledonian Edinburgh, the Hilton Edinburgh Carlton, and the Hilton Garden Inn Dublin City Centre are owned by funds managed by Henderson Park and operated by its hotel platform, Klarent Hospitality.
Aareal Bank acted as the arranger, sole lender, and facility and security agent for the transaction.
The Caledonian Edinburgh, a former Victorian railway hotel with over a century of history and affectionately known as "the Caley," overlooks Edinburgh Castle and has hosted notable guests such as Judy Garland and Barack Obama.
Historic hotel Hilton Edinburgh Carlton is conveniently located near Edinburgh Castle and Princes Street, while the riverside hotel Hilton Garden Inn Dublin City Centre is within walking distance of Dublin's key landmarks and the vibrant Temple Bar neighbourhood.
Michelle Weiss, head of Hotel Properties at Aareal Bank, said: ‘We are pleased to continue our long-standing partnership with Henderson Park on this remarkable transaction. This deal showcases our expertise in delivering tailored solutions for high-quality hospitality assets in prime locations.’
Christophe Kuhbier, head of Investments, Europe at Henderson Park, added: ‘This financing is an important milestone in our investment strategy for this portfolio and a testament to the quality of the hotels securing the loan and their future potential to be unlocked via Klarent Hospitality’s active asset management. Aareal Bank is an experienced and knowledgeable hotel lender who has been a trusted partner of ours for many years and we are pleased to be working with the team there again.’
The two Edinburgh hotels will undergo significant renovations, including expanding guest rooms, to enhance the guest experience.
DLA Piper and Paul Hastings served as legal advisors to Aareal Bank and Henderson Park, respectively, while CBRE acted as Aareal Bank's external real estate valuation advisor.
