Aareal refinances Dutch and UK hotels

Aareal Bank is refinancing loans it made to one of its stable of hotel borrowers, funding a new, €350m, five-year facility secured against eight Park Plaza hotels in London and the Netherlands.

The German bank refinanced three of PPHE Hotel Group’s four London hotels: Park Plaza Riverbank; Park Plaza Victoria; and Park Plaza Sherlock Holmes. The Dutch Park Plaza hotels it refinanced were: Amsterdam Airport; Victoria Amsterdam; Vondelpark, Amsterdam; Eindhoven; and Utrecht.

The new debt replaces three facilities with maturity dates between December 2013 and September 2017 and comprises a sterling tranche of up to £167.6m and a euro tranche of up to €153.2m.

The sterling tranche includes up to £7m for capital expenditure at the London hotels and interest has been partially hedged at a fixed rate of 5.665% per annum.

The euro tranche includes up to €7.5m for capital expenditure on the Dutch hotels and €24m to refinance the existing development facility for the newly opened art’otel amsterdam, provided by Israeli bank Hapoalim, which matures in the first quarter of next year.

A total of €121.7m drawn down from the euro tranche has been hedged at a fixed rate of 4.599% per annum. Aareal expects to lend more than €8bn by the end of 2013 after raising its new business target from €6bn-€7bn earlier this year.