Hermes Investment Management has provided a seven-year, £120 mln (€136 mln) refinancing to the operator of the Ham Yard hotel in the Soho district of London.
The borrower Firmdale Hotels is using the loan to refinance debt secured against the Soho hotel and to expand its hotel business.
This is the second hotel financing completed by Hermes Real Estate Debt Strategy since its inception in February 2015. The £120 mln loan brings the total amount Hermes has invested in the UK real estate senior debt market to £485 mln across 15 loans.
Vincent Nobel, head of real estate debt at Hermes, said: 'Providing funding to help support Firmdale’s expansion following the success of Ham Yard Hotel, appeals to our investment strategy of delivering holistic returns. The hotel is a great destination created out of a previously disused part of central London. Firmdale's track record as a best-in-class manager of boutique hotels gives us great confidence in its ability to manage this asset, while continuing to grow the group.'
Firmdale was advised by JLL.
Chris Holmes, lead director, JLL Debt Advisory, added: 'We are pleased to have advised on this financing which is our second transaction with Firmdale this year, having also arranged financing for its New York hotels in October.'
