UK’s first Nobu Hotel refinanced with £68.5m facility

Pbb Deutsche Pfandbriefbank and LaSalle have provided senior and mezzanine debt to replace a development loan.

Pbb Deutsche Pfandbriefbank and LaSalle Investment Management have teamed up for a refinancing of the UK’s first Nobu Hotel in London’s Shoreditch area.

The two lenders provided a total of £68.5 million (€78.8 million) of debt to the hotel’s owner, Willow Corp Sarl, in a deal arranged by real estate debt advisor BBS Capital.

The deal was structured as a £48.5 million senior debt facility provided by pbb and a £20 million mezzanine loan from LaSalle.

The loan refinances a development facility which funded the construction of the 8,415-square-metre hotel, which opened to guests in September 2017.

The combination of senior and mezzanine debt offers “highly competitive terms”, said Joanne Barnett of BBS Capital.

Nobu Hotel Shoreditch is located at 10-50 Willow Street. The 148-room hotel and spa is operated by Nobu Hospitality, known for its high-end and innovative Japanese restaurants, under a 15-year management agreement.

“Nobu London is an excellent example of our ability to support sponsors from development through to asset stabilisation,” said Amy Klein Aznar, LaSalle’s head of debt investments and special situations.