LaSalle Investment Management said on Thursday that its £804 mln (€920 mln) fund, LREDS III, has provided a mezzanine facility of £20 mln to finance the UK’s first Nobu Hotel in Shoreditch, London.
The loan to the hotel's owner, Willow Corp Sarl, is part of a refinancing which replaces a development loan that funded the construction of the 8,415 m2 property, which opened to guests in September 2017.
BBS Capital arranged the loan totalling £68.5 mln which comprised the £20 mln mezzanine debt facility from LaSalle and a £48.5 mln senior debt facility with Pbb Deutsche Pfandbriefbank.
Nobu Hotel Shoreditch is a 148-room hotel and spa, originally designed by architect Ron Arad and delivered by Ben Adams Architects. Best known for its high-end Japanese restaurants, Nobu Hospitality was selected to operate the property under a 15-year management agreement.
LREDS III invests across western Europe, with a focus on the UK. Its strategy is to lend against quality assets with best-in-class sponsors, the combination of which offers compelling risk-adjusted returns across mezzanine and whole loan investment opportunities.
Amy Klein Aznar, head of debt investments and special situations at LaSalle Investment Management said: 'Nobu London is an excellent example of our ability to support sponsors from development through to asset stabilisation.'
Having closed at £804 mln in 2017, LREDS III has now deployed £233 mln across seven real estate debt investments across Western Europe. LREDS III’s capital raise was oversubscribed, closing with aggregate commitments of £804 mln, exceeding its initial £750 mln target. LREDS III has attracted 17 LPs from all over the world, comprising a mix of investors from Europe, the Middle East, Asia and the US.
