August 18, 2021
CBRE arranges £85m debt facility from an affiliate of KSL Capital Partners to refinance recently completed London hotel
London, 18 August 2021 – Via its European Capital Solutions (“KSL ECS”) platform, an affiliate of KSL Capital Partners, LLC (“KSL”) has provided an up to £85m loan to an affiliate of Resolution Property (including potential future funding) to refinance the development facility secured on the recently opened Hyatt Place, London City East hotel. The loan is structured to finance potential operating and interest shortfalls as the property’s performance stabilises. Resolution Property was advised by CBRE’s Debt & Structured Finance team, part of CBRE Capital Advisors.
The property is a 280-bedroom hotel in Aldgate and is the first Hyatt Place in Central London. Situated close to London’s financial district, it features a ninth-floor roof-top bar and terrace with views across the capital, two flexible event spaces, an inner courtyard, a gym and a grab-and-go food market.
Whitechapel and Aldgate have seen significant investment in recent years, with multiple development projects, including 1 Braham Street and The White Chapel Building, improving its connectivity to the rest of London and the surrounding public spaces.
Chris Gow, Executive Director, Debt & Structured Finance, CBRE commented: “We are delighted to have secured this financing on behalf of our client, Resolution Property. This transaction demonstrates renewed lending appetite for assets benefitting from a combination of strong real estate fundamentals, established sponsors and an attractive brand. It also underlines recovery expectations for the London hotel market, which has been severely challenged over the course of the last year. Demonstrating their in-depth experience of the hospitality sector, KSL provided a thoughtfully structured and seamlessly executed loan to accommodate the property’s opening and post-COVID ramp up.”
Scott O’Donnell, COO at Resolution Property commented: “We are pleased to have worked with CBRE on the financing of Hyatt Place London City East hotel. Having successfully opened the hotel on 1 July, refinancing the development loan was the next step in the hotel’s life cycle. CBRE and KSL have worked with us to deliver a financing package that reflects the strong fundamentals of the hotel as well as the unique challenges of opening a new hotel during the early stages of London’s hotel recovery.”
Resolution Property was advised by Taylor Wessing LLP, KPMG and Berkeley Capital and KSL by Latham & Watkins LLP.
Miranda Walters: firstname.lastname@example.org / +44 (0) 207 182 2506 / @CBRE_UK
About Resolution Property
Resolution Property was founded in 1998 with the specific aim of investing in UK and European commercial real estate that offers scope for high returns through a combination of good initial stock selection, active management, refurbishment and redevelopment potential.
Grounded in experience of some of Europe’s most successful urban development projects, Resolution Property creates inspiring places, from cutting-edge workspaces to vibrant retail destinations across Europe. Its London and UK regional office developments offer bespoke workplaces, recognising that creative companies thrive in stimulating environments. Across Europe, Resolution uses innovative and creative asset management techniques to release un-tapped value from outlet centres and mixed-use schemes.
Resolution Property’s current and recent creative office developments include:
Floreasca Park, Bucharest, Romania
Moretown, Wapping, London
Pegasus Park, Brussels, Belgium
Vantage London, West London
Programme in Bristol, United Kingdom
Royal Exchange offices, The City of London, London
The Gramophone Works, Notting Hill, London
The Trade in Frankfurt, Germany
Alphabeta in Shoreditch, London
Ampersand, Soho, London www.resolutionproperty.com
About KSL Capital Partners
KSL Capital Partners, LLC is a global investment firm specialising in travel and leisure enterprises in five primary sectors: hospitality, recreation, clubs, real estate, and travel services. KSL has offices in London, United Kingdom; Denver, Colorado; Stamford, Connecticut; and Singapore. Since 2005, KSL has raised approximately US$15 billion of capital across debt and equity funds.
KSL ECS is actively investing across the travel and leisure sector in Europe. KSL ECS focuses on credit and non-controlling equity investments and has the ability to invest throughout the capital structure. For more information, please visit www.kslcapital.com or contact ECS@kslcapital.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.