L&G lends €102m against London airport hotels

Insurer Legal & General has issued a £75 mln (€102 mln) loan to a private client secured against five hotels at London’s Gatwick and Stansted airports.

The 20-year facility has an LTV of 78% with a bullet repayment at expiry. The five hotels are all let on long-term leases to established hotel groups at a percentage of turnover.

It is the second hotel lending transaction to be completed on behalf of L&G’s lending arm, LGIM Commercial Lending, following a 10-year £37.5 mln loan secured against the Hilton London Heathrow Airport Terminal 5 Hotel, completed at the end of 2014.

Steve Boyle, real estate lending manager at L&G, said: ‘We were hit with a last-minute request for a change of loan term, which we accommodated, showing a flexibility which the client very much appreciated. We look forward to building on this new relationship.’

LGIM Commercial Lending has invested a total of £1.15 bn across 13 deals, including six loans to the social housing sector, two to the student accommodation sector and one to the care home market.