Aareal Bank provides hotel financing in London and Paris

The financing was disbursed as two separate loans, respectively entailing the refinancing of the 25hours Paris Terminus Nord in Paris and the acquisition financing of the Bankside Hotel, Autograph Collection in London.

The latter was assessed and qualified as a green loan under Aareal Bank’s third-party certified Green Finance Framework.

Said Bettina Graef-Parker, managing director, special property finance at Aareal Bank: 'We are pleased to announce our inaugural transaction with Vertiq. Despite new political and economic uncertainties, the travel industry has seen a strong recovery since Covid-related restrictions have been gradually lifted.

'We are therefore strengthened in our view that the hotel sector has a high degree of resilience and will continue looking to expand our loan portfolio through carefully selected top-tier properties in prime locations.'

Located in the 10th arrondissement, the 25hours Paris Terminus Nord is a modern hotel featuring 237 rooms and suites, along with the Neni Restaurant and Sape Bar.

The Bankside, Autograph Collection is also an upscale hotel, recently constructed as part of the One Blackfriars Development of London.

The 161-room property was constructed according to BREEAM Excellent standards and is committed to incorporating sustainability in its day-to-day operations.

'We have chosen to work with Aareal on these loans because of their expertise in hotel financing and in-depth knowledge of and commitment to the hotel market in general. Their ability to work swiftly in different jurisdictions against a tight timeline has made it a real pleasure to work with the Aareal hotel team,' said Erik Jacobs, partner at Vertiq Capital.

Vertiq Capital is a real estate investment manager with a focus on hospitality and other operational assets.

Vertiq Capital Partners was advised by CMS in London and SKBG in Paris. Aareal was advised by DLA Piper and De Pardieu for legal matters and HVS for valuation.