Legal & General Investment Management’s (LGIM) real assets division has arranged a £175 million long-term loan for the UK-based hotel owner Arora Group.
LGIM Real Assets arranged the financing on behalf of a third party client, which has provided the loan alongside Legal & General’s annuity fund. The loan has been provided for a 15-year term and is secured by an undisclosed asset owned by the borrower.
The facility is the second to be agreed between LGIM Real Assets and Arora Group and it will be used to refinance existing group debt.
“The fundamentals of this loan are very strong. It is secured against a high quality asset within the Arora Group portfolio,” said Steve Boyle, lending manager at LGIM Real Assets.
“We continue to look across all sectors, both mainstream and alternative, in the UK for equally appealing opportunities across all durations. It remains an exceptional time for borrowers to lock into longer term debt, especially when the lender can offer a fixed rate, avoiding the need for hedging, and the flexibility of substitution rights,” Boyle added.
The Arora Group, led by owner Surinder Arora (pictured), is known predominantly for its portfolio of hotels, including hotels close to London’s Heathrow and Gatwick airports.
“As a Group, we are always looking to achieve the best value, and work with a range of lenders to ensure the most appropriate financing structures are in place for the Arora Group,” said Arora.
“On this occasion, Legal & General is again the ideal partner and has secured an excellent rate for the group, leveraging the current low interest rates,” he added.
LGIM Real Assets, headed by Bill Hughes, has £21.1 billion of assets under management and is responsible for LGIM’s direct investment in property and infrastructure. Alongside real estate fund management arm Legal & General Property and lending and investment unit LGIM Infrastructure, debt finance is provided by the group’s Commercial Lending Limited division.