Winner of Debt Advisor of the Year in the Real Estate Capital 2017 Awards London:

PBB and LaSalle IM refinance Nobu Hotel in Shoreditch with £68.5m

Deutsche Pfandbriefbank (PBB) and LaSalle Investment Management have extended a £68.5m debt facility to Willow Corp Sarl, owners of the Nobu Hotel in Shoreditch.

The facility will replace the development loan that funded the building of the 8,415 sq m hotel, which opened to guests in September 2017.

PBB has provided a £48.5m senior loan and LaSalle Investment Management provided a £20m mezzanine loan through the £804m LREDS III fund. BBS Capital, the debt advisor and asset manager, arranged the refinancing.

Nobu Hotel Shoreditch is located at 10-50 Willow Street. The fashionable, 148-room hotel and spa, was originally designed by world acclaimed architect Ron Arad and was delivered by Ben Adams Architects. Nobu Hospitality was selected to operate the property under a 15-year management agreement.

Joanne Barnett of BBS Capital, said the refinancing was secured “on highly competitive terms”.

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. It was a pleasure to work with Deutsche Pfandbriefbank and BBS Capital on this great transaction. Having successfully closed at £804m in 2017, LREDS III has now deployed £233m across seven real estate debt investments across Western Europe.”

Charles Balch, Head of Real Estate Finance UK, CEE and International Clients at pbb, said: “We were delighted to provide Willow Corp Sarl with a senior debt package to refinance their construction facility, working alongside both LaSalle Investment Management and BBS Capital.”

In 2017, BBS Capital it helped clients finance over £1bn of property deals, including arranging the acquisition finance for WeWork’s Fox Court building in Grays Inn Road, London. PGIM Real Estate Finance has provided a £50.1m loan to the private Middle Eastern investor which acquired the Midtown office in March 2017 for £101.45m.

View the article on CoStar

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