Leumi UK lends £11m to longstanding hotel client 4C Group
Posted: 7th August 2024 | Share
Specialist lender Leumi UK has approved two loans totalling £11m to existing client and established hotel investor and operator, 4C Group.
The first loan will add £5 million to 4C Group’s existing £75 million term facility (“4C Hotels – Minories LLP”) to support the holding of Canopy by Hilton London City hotel, a 342-bedroom 4-star hotel located in the City of London.
Leumi UK has also approved a £6 million bridge-to-planning facility for (“4C – Jamestown Road Limited”), secured against property and land located in Camden, London.
4C Group acquired the vacant property in 2023 and appointed Regal London as the development manager. for a mixed-use PBSA-led scheme.
Al-karim Nathoo, Chief Executive Officer, at 4C Group, said: “We have known James, Dan and the team for quite some time now, making Leumi one of our longest standing partnerships to date.
“The reason for this is their ability to creatively structure deals across different asset classes through cross-team collaboration, finding innovative solutions to meet our requirements. Based on our experience with other lenders, this approach is anything but traditional, which is why we plan to continue working with them in the future.”
James Greenwood, Hotel Finance Relationship Director, at Leumi UK, said: “The Leumi teams proudly back 4C Group, a highly regarded investor and operator that has an exceptional reputation across the industry of delivering and operating hotels across the UK. And at a time when the hotel industry is performing at its best – despite acute political and economic uncertainty over the past two years – this accolade is no easy thing to come by.
“Working together with our Property Finance team, we have swiftly managed to get these deals over the line – only taking a month. Our diligent and collaborative approach has earned us a strong reputation in the business as we continuously customise solutions to meet our client’s needs.”
Dan Whiteman, Property Finance Relationship Director, at Leumi UK said: “Although the Hotel Finance team had previously worked with 4C, this was our first collaboration with them. As such, deep sector knowledge and trust in the Sponsor's integrity and asset performance were crucial for successfully closing these deals.
“According to recent Savills research, London has the largest need for student accommodation, with almost 100,000 beds needed. With the ultimate goal of implementing a PBSA and affordable housing scheme, Regal London's successful track record with Camden Council reassured us of their ability to secure planning permission. This initiative aims to reduce the 60,580 homeless households currently in London and contribute to Camden's commitment of building 2,600 affordable homes.”