Legal & General completes second hotel loan
Legal & General ("L&G"), on behalf of its lending arm, LGIM Commercial Lending Limited ("CLL"), announces that it has completed its second hotel lending transaction, with a £75 million, 20 year loan to a private client, secured against five hotel assets at Gatwick and Stansted airports.
The five hotel assets are all let on long leases to established hotel groups at a percentage of turnover. The LTV on the facility is 78% with a bullet repayment at expiry.
Steve Boyle, Real Estate Lending Manager at Legal & General, said: "These five assets are extremely well positioned for airport traffic. The rents are set at a low percentage of turnover, with plenty of upside, which has enabled the high gearing. We were hit with a last minute request for a change of loan term, which we accommodated, showing a flexibility which the client very much appreciated. We look forward to building on this new relationship."
The deal is the second hotel lending transaction completed by CLL and follows a £37.5 million, 10 year loan secured against the Hilton London Heathrow Airport Terminal 5 hotel completed at the end of 2014. CLL has now invested a total of over £1.15 billion across 13 deals. Previous transactions include six loans to the social housing sector, two loans to the student accommodation sector and a loan to the care home market.
For more information please contact:
PR MANAGER, LEGAL & GENERAL CAPITAL AND REAL ASSETS, LGIM (PROPERTY, INFRASTRUCTURE AND ALTERNATIVE FINANCE)
t: + 44 (0) 203 124 2777
m: + 44 (0) 7718 395 279
ABOUT LEGAL & GENERAL
Legal & General Property Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 2091897.