German lender Aareal Bank is providing London-listed PPHE Hotel Group with a €354 mln refinancing facility for eight assets in the UK and the Netherlands.
German lender Aareal Bank is providing London-listed PPHE Hotel Group with a €354 mln refinancing facility for eight assets in the UK and the Netherlands.
A tranche of €201 mln is earmarked for three of PPHE's four hotels in London. They are Park Plaza Riverbank, Park Plaza Victoria and Park Plaza Sherlock Holmes.
The second tranche of €153 mln is to be used for the five Dutch hotels which PPHE owns and operates: Park Plaza Victoria Amsterdam, Park Plaza Vondelpark and Park Plaza Amsterdam Airport in Amsterdam, as well as Park Plaza Utrecht and Park Plaza Eindhoven.
As well as refinancing the existing facilities, the facility will fund capital expenditure at the hotels. In addition, PPHE can decide, subject to satisfaction of certain conditions, that the facility will also refinance the existing development facility for the recently opened art'otel Amsterdam, which matures in Q1 2014.
The facility, which is expected to complete on 3 December, will be secured by first legal charges over each hotel and pledges over the shares in each hotel owner and their related operating subsidiaries.
