L&G completes First Hotel Loan.
03 November 2014
Legal & General (“L&G”), on behalf of its lending arm, LGIM Commercial Lending Limited (“CLL”), announces that it has agreed a £37.5 million, 10 year loan to a private client, which is secured against the Hilton London Heathrow Airport Terminal 5 hotel.
Built in 2011 and located just one mile from Terminal 5 and within easy access of the M25, the 350-bed hotel is operated by the borrower, with a Franchise Agreement with Hilton and provides over 1,474 sq m of flexible meeting and conference space.
The deal is the first hotel lending transaction completed by CLL. Following hot on the heels of the announcement earlier this month that F&C Commercial Property Trust expects to enter into a new bi-lateral 10 year, £260 million facility agreement with L&G, the deal brings L&G’s growing commercial loan book to over a £1 billion, having invested or committed a total of £1.08 billion over 12 deals. Previous transactions include five loans to the social housing sector, two loans to the student accommodation sector and a loan to the care home market.
Steve Boyle, Real Estate Lending Manager at Legal & General, commented: “This is L&G’s first hotel lending transaction and offers up a high quality asset in an excellent location, run by an experienced operator.
“In 2014, we have lent in numerous sectors, including social housing, industrial, care homes and now hotels, and continue to strive to broaden our horizons in other sectors, as well as being keen to lend further in traditional commercial areas.”
Laura Mason, Director of Direct Investments at Legal & General Capital, said: “This investment demonstrates our continued commitment to move into direct investments in the UK using our internal capital sources to provide financing to many different sectors.”
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
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