Specialist lender Cohort Capital has provided a £73 mln (€84 mln) loan to a Qatari-based group for the refinancing of the five-star NoMad Hotel in London’s Covent Garden.
The 91-bedroom luxury boutique hotel was formerly the Bow Street Magistrates Court and Police Station, built in the 18th century. Oscar Wilde, Emmeline Pankhurst and The Kray Twins were among many notable public figures passing through the courts over the last two centuries.
The Grade II listed building underwent a full refurbishment program in 2018-20, converting the 170,000 ft2 (15,800 m2) building into a hotel, restaurant, museum and bar.
The full development effort was led by Sydell Group, as a result winning five design awards from Ahead, including Best New Hotel in Europe, and most recently placed No.46 on The World’s 50 Best Hotels list.
Located opposite the Royal Opera House, the hotel draws inspiration from its New York roots, designed in collaboration with New York design house Roman & Williams.
The bespoke debt facility, provided by Cohort, was used to refinance a syndicate of banks whose loan term was approaching expiry.
The business will continue to be operated by Sydell Group, which operates the US-based NoMad and other branded hotels, under a management agreement.
Bal Sohal, executive chairman of Cohort Capital, said: 'Our substantial private capital backing allows us to agree flexible debt structures for large loans where there is a credible sponsor – as is the case here.
'We are seeing much higher demand for private specialist outfits like Cohort Capital, as high street banks are increasingly offering unfavourable terms for refinancing or seeking to reduce their exposure to certain real estate sectors.
'The NoMad hotel is an iconic property that will continue to flourish in what is arguably London’s prime tourist and cultural hotspot.'
Matt Thame, CEO of Cohort Capital, added: 'As banks retrench further from real estate debt markets, larger debt funds with flexible balance sheet solutions won’t get out of bed for anything less than £100 mln. This has opened up a space in the property finance market where Cohort is staying very active.
'There is no doubt however that markets are contracting, and we can safely say the residential and commercial real estate sentiment is not yet on the up – which is why we are remaining extra selective on the sponsor, strategy and location of the asset. The hotel room performance at the NoMad is strong, and the F&B concept and plan is a compelling one.'
