Pricoa Mortgage Capital has arranged a £103m loan to refinance London’s Waldorf Hilton hotel, the first loan under the US lender’s new Friends Life senior debt investment mandate. The 15-year, fixed-rate loan will refinance existing debt for owner the Bhatia family who bought the Strand hotel in 2007.
The financing is Pricoa’s seventh since it launched its European lending business in 2012 and its fifth in the UK. The business, a subsidiary of Prudential Financial of the US, has now made nearly $1bn of commercial real estate loans in Europe.
Friends Life awarded a £500m discretionary mandate to Pricoa in July, boosting Pricoa’s single loan limit in the UK to more than £250m. The co-investment programme targets senior secured, fixed-rate loans with maturities of five to 15 years, in and outside London.
Drew Abernethy, the lender’s head of European originations, said the deal showed Pricoa’s “long-term commitment to European markets” as well as its “ability to deploy capital on behalf of third-party mortgage investors”. Last month, Pricoa made a €240m, five-year senior loan to refinance 13 Dutch parking assets for operator Q-Park.