EquityBridge arranges funding for Union Hanover deals

Private equity and real estate debt group EquityBridge Asset Management (EBAM) has arranged two transactions in the UK for hospitality investor and developer Union Hanover.

In the first transaction EBAM arranged a £15.5 mln (€19 mln) consolidated funding package to Union Hanover for it's Black Lion site in Aldgate. This has enabled the developer to repay senior lender Topland, who provided it with acquisition finance to acquire Black Lion House, a 7,000 m2 office block at the edge of the City which Union Hanover is set to convert into a 220-bedroom extended stay hotel.

The financing also enabled Union Hanover to buy out the remaining 47.5% in the project held by developer Southern Grove and project and construction management consultancy Rise. Rise will remain project manager on the scheme.

EBAM also provided the acquisition finance for Union Hanover’s forward funding of 100 serviced apartments from Barratt Homes London at its Great West Quarter scheme in Brentford, west London, which Union Hanover will operate under its Urban Villa concept, and is expected to begin trading in November.

Warren Malschinger managing director and founder of EquityBridge Asset Management said: 'As funding partner for Union Hanover we liked the fact that this transactions counterpart is a FTSE100 company and also that the nature of this deal carries very little development risk. It will allow us to reduce the cost of long term financing at completion by collapsing the bridging loan into an investment facility secured against the trading asset.'

EBAM is involved in a number of other real estate fundings, including private hospitals and other leisure assets. 'The extended stay sector and hostels is of particular interest for us but we will also look at other leisure market opportunities where funding still appears to be relatively scarce compared to other sectors,' Malschinger added.

EquityBridge also announced that its Guernsey based bridging fund, 'the Secured Fund' aims to grow its book by adding upwards of £100 mln over the next twelve months as it continues to attract ongoing investment into the fund due to its double digit performance since inception.