Austria-based banking group Raiffeisen has provided more than €50 million of debt to refinance the luxury Four Seasons Hotel Gresham Palace in Budapest, in a deal arranged by Cushman & Wakefield’s EMEA structured finance unit.
The financing was split evenly between Raiffeisen Bank International AG and the group’s Hungarian arm, Raiffeisen Bank Zrt. The loan refinances debt provided by Hungarian commercial bank CIB Bank.
The loan is understood to reflect a loan-to-value ratio in the high 50s percent for a five year term.
Cushman & Wakefield, which announced the deal, said that the loan was sourced on behalf of the five-star hotel’s owner, SAS Holding Kft, but declined to comment further on the identity of the borrower. According to press reports at the time, the State General Reserve Fund of Oman bought the hotel in 2011 from Avestus, formerly known as Quinlan Private, which had bought the property in 2001 and redeveloped it as a hotel which opened in 2004.
The Four Seasons Hotel Gresham Palace is a 179-room art nouveau landmark on Szechenyi Square at the end of Budapest’s famous Chain Bridge across the Danube River. The property was originally built in 1906 as an office and apartment building. Following World War II the Red Army used the building as a barracks and it subsequently fell into disrepair before being redeveloped as a hotel.
“Our knowledge of which banks, insurers and funds are active, and what their specific requirements are, enables us to deliver optimal results for our clients. The lending market remains strong across Europe and this loan has allowed the owners of this iconic European hotel to refinance on improved terms,” said Edward Daubeney, partner in the EMEA structured finance team at Cushman & Wakefield.
Raiffeisen Bank International AG focusses on Austria and central and eastern Europe. Individual markets within the region are covered by subsidiary banks.