Cornerstone Real Estate Advisers Europe has provided an £87 mln (€110 mln) 10-year debt facility to PPHE Hotel Group for the refinancing of the Park Plaza Victoria hotel in London.
Cornerstone Real Estate Advisers Europe has provided an £87 mln (€110 mln) 10-year debt facility to PPHE Hotel Group for the refinancing of the Park Plaza Victoria hotel in London.
The new facility is secured on the 299-room freehold hotel and bears a fixed interest rate of 3.41% per annum.
The hotel, which is valued at £161.5 mln, was part of a five year term facility comprising a sterling tranche and a euro tranche provided by Aareal Bank which will remain in place secured on two of PPHE Hotel Group's London hotels and six of its Dutch hotels.
The new facility will be used to repay £64.8 mln of the Aareal Bank facility and the balance will be used to fund the group's ongoing development programme of new hotels and corporate purposes.
'As previously announced, the board is keen to take advantage of current favourable market conditions and we are delighted to have secured the refinance of Park Plaza Victoria London,' said Boris Ivesha, president and CEO of PPHE Hotel Group.
'The new facility enables us to invest further in this well-established and well-performing hotel and our experienced management will continue on optimising its performance, growing its market share and delivering great customer service.'
