Barings finances Cafe Royal with £165m facility

By Paul Norman - Monday, March 05, 2018 8:54

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Barings Real Estate, part of Barings, has provided a £165m loan secured against the Hotel Café Royal, the iconic 150-year old five-star luxury hotel in London’s West End, to a subsidiary of Alrov Group, the luxury property development firm.

The seven year, fixed rate first mortgage loan is secured against the 159-room hotel and includes 16,000 sq ft of retail situated on the ground floor fronting Regent Street which is let to Nespresso, Lotus and Wolford. The loan, which represents a 47% loan-to-value, will be used to refinance existing debt.

Thefinancing means Barings’ European real estate debt team has underwritten loans over the last 12 months across the capital stack including senior debt, development financing and whole loans in a range of traditional and alternative real estate sectors including student housing and the private rented residential sector.

Chris Bates, Head of Real Estate Core Mortgage Europe at Barings Real Estate, said: “This is a rare opportunity to provide financing for one of London’s most iconic hotels, which attracts growing numbers of tourists visiting from across the globe. This transaction demonstrates Barings’ continued appetite for significant debt financings in the alternative sectors of the UK real estate market, as the team focuses on growing the platform.”

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