UK real estate investor and developer Firethorn Trust has received an £18 mln (€21.5 mln) loan from Grosvenor to finance its recent acquisition of the luxurious Malmaison York hotel.
This 2,694 m2 property, boasting 150 rooms, a rooftop bar, 'Work + Play' facilities, and a spa and gym, is recognized as a top performer within the Malmaison and Hotel Du Vin group.
Located on Rougier Street within the historic city walls, the hotel, which operates under a 35-year lease, currently generates £2.1 mln (€2.5 mln) in annual rental income. Its prime location puts it within walking distance of popular tourist attractions such as York Minster, York Castle, and the National Railway Museum.
The hotel marks the first addition to Firethorn Trust's Firethorn Living portfolio, which currently includes two PBSA developments and a central London office-to-residential conversion project.
Richard Whitby, CFO at Firethorn Trust, said: ‘The confidence that Grosvenor has shown in this asset underscores its strong investment potential, bolstered by a long-term lease with a premier hotelier in an exceptional location. Grosvenor’s wider expertise as a developer and asset manager make them an ideal lending partner for this asset. At Firethorn, we have a strong track record of making strategic acquisitions that deliver attractive and secure returns, and Malmaison York is a valuable addition to our portfolio. This financing demonstrates Firethorn’s strength as a sponsor and our ability to secure favourable financing options, in today’s dynamic real estate market.’
Steph Ball, investment director at Grosvenor, added: ‘This transaction ticks a lot of boxes for us. We saw an opportunity to finance a high-quality asset, with a strong operator, and were able to adapt our strategy to do our first investment loan. This helps to diversify our existing ‘residential development’ portfolio, and we’re pleased to be working with a fantastic new partner with ambitious growth plans.’
This financing is consistent with Firethorn's strategy of acquiring high-quality assets in desirable locations. The investment loan marks Grosvenor's entry into the lending market, expanding its existing portfolio beyond traditional investments.
Firethorn Trust was advised by JLL and Maples Teesdale, while Grosvenor received counsel from CBRE Lending and Freeths.
