Barings Real Estate has provided a £165 mln (€185 mln) loan secured against the Hotel Café Royal, the iconic 150-year old five-star luxury hotel in London’s West End.
The seven year, fixed-rate first mortgage loan is secured against the 159-room hotel which includes 16,000 sq ft (1,500 m2) of retail space situated on the ground floor fronting Regent Street which is let to Nespresso, Lotus and Wolford.
The loan, which represents a 47% loan-to-value, will be used to refinance existing debt.
Chris Bates, head of real estate core mortgage Europe at Barings Real Estate, said: 'This is a rare opportunity to provide financing for one of London’s most iconic hotels, which attracts growing numbers of tourists visiting from across the globe. 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.'
