Hotel group PPHE said it has entered a £182.4 mln (€231 mln) loan from AIG Asset Management for its Park Plaza Westminster Bridge London.
The new facility is for a term of 12 years with £172 mln bearing a fixed interest rate of 3.785% per annum and the balance bearing a competitive floating interest rate.
The 499-room hotel was valued at £370 mln, giving the facility a loan to value of 50%.
The new facility will be used to repay £104.2 mln of the Bank Hapoalim Luxembourg which has a maturity date of 1 June 2018, and the balance will be used for general corporate purposes.
Boris Ivesha, President & Chief Executive Officer of the Company, commented: 'The current favourable market conditions have enabled us to continue our ongoing programme for the long term refinancing of assets within the Group. This agreement marks the start of a new relationship with AIG Asset Management (Europe) Limited and enables us to further invest in our flagship hotel, Park Plaza Westminster Bridge London, as we remain focused on growing our market share and delivering great customer service.'
