Carlton closes EUR250m recapitalisation at the Four Seasons Hotel in Milan
Carlton has closed a EUR250m recapitalisation and discounted loan payoff at the Four Seasons Hotel in Milan, Italy.
The Four Seasons Milan is comprises 114 luxury rooms, with 51 suites, two five-star restaurants, a high-end spa and a prime high-street retail store in the heart of the Montenapoleone district of Milan.
Despite the ongoing capital-raising problems and volatility that continues to plague the European real estate and financial markets, Carlton was able to access a balance sheet investor who funded the transaction enabling their client to buy their loan back at a discount and maintain ownership of the property without bringing in any other equity investors.
Carlton chairman Howard L Michaels says: “This transaction clearly highlights Carlton’s ability to access non-conventional capital sources to fund important client transactions, whether they be in Europe or on the North Pole. We specialise in understanding the capital objective and then customising a targeted, strategic approach to access the necessary capital on the best possible terms for our clients.
"This transaction is a precursor to other discounted loan payoffs which will inevitably occur, now that financial institutions with European exposure look to monetize underwater loans.”
- How to set up a hedge fund