UK insurer Legal & General has issued a £37.5 mln (€48 mln), 10-year loan to a private client, which is secured against the Hilton London Heathrow Airport Terminal 5 hotel.
UK insurer Legal & General has issued a £37.5 mln (€48 mln), 10-year loan to a private client, which is secured against the Hilton London Heathrow Airport Terminal 5 hotel.
The transaction was closed on behalf of L&G's lending arm, LGIM Commercial Lending.
Built in 2011 and located just one mile from Terminal 5 and within easy access of the M25, the 350-bed hotel is operated by the borrower under a franchise agreement with Hilton and provides over 1,474 m2 of meeting and conference space.
Following hot on the heels of the announcement earlier this month that F&C Commercial Property Trust expects to enter into a new bi-lateral 10-year, £260 mln facility agreement with L&G, the deal brings L&G’s commercial loan book to over £1 bn, having invested or committed a total of £1.08 bn over 12 deals.
Previous transactions include five loans to the social housing sector, two loans to the student accommodation sector and a loan to the care home market.
Steve Boyle, real estate lending manager at Legal & General, commented: 'This is L&G’s first hotel lending transaction and offers a high-quality asset in an excellent location, run by an experienced operator.'
