GIC is being tipped as the likely provider of up to £150m of mezzanine finance for a large hotels portfolio. The owners of 61 UK Holiday Inns have mandated Deutsche Bank to refinance the portfolio ahead of a maturity next May. LBREP, GIC Real Estate and Realstar hope to close the refinancing this year.
The existing loan, securitised as Tahiti Finance, was initially restructured in May 2010. DB asked mezzanine providers to quote terms for £150m of debt and is also seeking investors to provide £400m of senior debt.
Starwood Capital and DRC Capital are among those asked to quote on the mezzanine. A source suggested the restructuring is too highly-leveraged and tipped GIC, which already owns equity, to provide the mezzanine. The £560.75m of outstanding debt comprises £453.79m in two securitised tranches and a £106.57m mezzanine loan.