OakNorth Bank provides GBP27m funding for Aldgate aparthotel development
OakNorth Bank has provided a bespoke GBP27 million structured finance facility to Oaktree Capital Management, a global alternative investment management firm.
The site will be developed into a new 12-storey Locke aparthotel operated by Edyn Group, a UK-based extended stay owner-operators. The 103-unit aparthotel will be situated at Buckle Street – a short walk from Aldgate East Station and the new Crossrail station at Whitechapel - and will offer office space on the mezzanine level and a restaurant on the ground floor.
The transaction marks the second significant development that OakNorth Bank has funded in the area over the past six months. The bank provided a GBP16.5m property finance facility to WMG Group in June last year to develop a residential-led, mixed-use 17-storey building at the corner of White Church Lane and Commercial Road.
Merzak Kaddour, Investment Director at Edyn Development Studio, says: “We are delighted to have partnered with OakNorth Bank for this transaction. Our decision to work with OakNorth was driven primarily by the strong relationship I have with the debt team and the depth of knowledge displayed by OakNorth’s team in structuring this facility. We look forward to a prolonged working relationship”.
Deepesh Thakrar, Senior Director of Debt Finance at OakNorth Bank, says: “We’re delighted to be working with the Edyn team and the strong backing of Oaktree Capital who are one of the world’s leading alternative investment managers, with real estate and infrastructure type assets making up 14% of its total $122bn under management. This was an exciting opportunity to work with a highly experienced team with one of the most notable track records in the industry. We look forward to working with them in the future as they continue to grow their UK portfolio.”