LREDS III provides mezzanine loan for UK’s first Nobu Hotel
LONDON (April 26, 2018) — LaSalle is pleased to announce that its £804m fund, LREDS III, has extended a mezzanine facility of £20 million to Willow Corp Sarl, the owners of the UK’s first Nobu Hotel in Shoreditch, London.
This loan is part of a refinancing which replaces a development loan that funded the building of the 8,415 sq m hotel, which opened to guests in September 2017. BBS Capital arranged the loan totalling £68.5 million which comprised of the £20 million mezzanine debt facility from LaSalle and a £48.5 million senior debt facility with PBB Deutsche Pfandbriefbank.
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. Best known for its high end and innovative Japanese restaurants, Nobu Hospitality LLC was selected to operate the property under a 15 year management agreement. Nobu has worldwide recognition as an exclusive brand for providing exceptional food and beverage, and the hotel side of its business is expanding across the globe.
LREDS III invests across Western Europe, with a focus on the UK. Its strategy is to focus on lending 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 & Special Situations at LaSalle Investment Management said: “We are delighted to have remained involved in the Nobu Hotel, one of the most unique hotels in London. 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 PBB and BBS on this great transaction. Having successfully closed at £804 million in 2017, LREDS III has now deployed £233 million across 7 real estate debt investments across Western Europe.”
Joanne Barnett of BBS Capital, explained: “We are delighted to have helped our clients refinance the development loan with a term facility. We utilised our market experience and strong lender relationships to arrange this significant refinancing with a combination of senior and mezzanine debt on highly competitive terms. It is another deal that demonstrates our clients trust our knowledge, experience and contacts in the debt market to secure the funding they need on the best possible terms.”
Charles Balch, Head of Real Estate Finance UK, CEE and International Clients at pbb, commented: “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.”
The most recently launched fund in LaSalle’s debt series has seen strong demand from investors across all regions globally and has been the most successful fund raise in the series to date. LREDS III’s capital raise was oversubscribed, closing with aggregate commitments of £804 million, exceeding its initial £750 million target. LREDS III has attracted 17 LPs from all over the world, comprising a diverse mix of investors from Europe, the Middle East, Asia and United States. The fund retained support from existing investors as well as attracting capital from investors that were new to the fund series.
LaSalle’s Debt Investments and Special Situations team, headed by Amy Aznar, has a strong track record of developing strategic relationships with best-in-class borrowers and senior lenders, and has significant experience across various sectors, geographies, deal sizes and capital structures. Since 2010, the team has committed £2.1 billion ($2.9 billion) of investments in 54 individual transactions and secured against £9.3 billion worth of real estate.
About LaSalle Investment Management
LaSalle Investment Management, Inc. (together with its global investment advisory affiliates, “LaSalle”) is one of the world’s leading real estate investment managers. LaSalle on a global basis manages approximately $59.5 billion as of Q2 2018 of private and public equity and private debt investments. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle Investment Management, Inc. is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.
This information is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made by means of a private placement memorandum. Past performance is not indicative of future results.