Legal & General’s lending arm has closed its first hotel financing.
LGIM Commercial Lending has agreed a £37.5m, 10-year loan to a private client, held against the Hilton at London Heathrow Airport Terminal 5. The deal is thought to have an LTV of just under 60% and a margin of just over 200 basis points.
The UK insurer continues to steadily build the size of its loanbook – which now stands at over £1bn – with medium and long dated deals.
The 350-bed hotel is operated by the borrower with a franchise agreement from Hilton. It also includes 1,474 sq m of meeting and conference space.
Steve Boyle, real estate lending manager at Legal & General, said: “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.”
Earlier this month L&G agreed a deal with the F&C Commercial Property Trust for a £260m refinancing, its largest deal to date.
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