OakNorth Bank provides bespoke debt finance facility to Bain Capital Credit
OakNorth Bank has provided a bespoke debt finance facility to Bain Capital Credit and Orka to support the acquisition and refurbishment of the Park Lane Mews Hotel, a 72-room four-star hotel, and three residential buildings comprising of 17 units in Mayfair.
The works will include the refurbishment of the guest rooms and communal areas, including the lobby, bars and restaurants. Both the hotel and the residential buildings are in the heart of Mayfair by Hertford Street, Stanhope Row and Market Mews. The prime central London location will ensure the hotel is popular with tourists, while the residential units will be attractive to a broad range of residents including high net worth individuals.
Bain Capital Credit is a global credit specialist with USD43.7 billion in assets under management. It invests across the full spectrum of credit strategies, including: leveraged loans, high-yield bonds, distressed debt and special situations, direct lending, structured products, non-performing loans (NPLs) and equities. Meanwhile, Orka is a pan-European alternative investment and advisory firm that sources and manages investments in real estate and asset backed businesses on behalf of, and in partnership with, some of the world’s largest institutions.
Fabio Longo, Managing Director at Bain Capital Credit, comments: “We are delighted to have acquired this fantastic hotel in such a prime location in partnership with Orka. This further enhances the substantial real estate portfolio we have built throughout Europe, which we are actively growing through attractive investment opportunities. The team at OakNorth Bank were able to put together a single facility that captures both the acquisition and refurbishment of the hotel, allowing us to focus on the repositioning of the assets, and move quickly without interruption.”
Oskar Sköldberg, Co-Founding Partner at Orka, further comments: “We are thrilled to have closed our second transaction together with OakNorth this year and are excited to progress with the business plan together with Bain Capital Credit. The transaction underpins our strategy to acquire fundamentally good assets in good locations with strong down-side protection and outperformance potential.”
Deepesh Thakrar, Senior Director of Debt Finance at OakNorth Bank, continues: “Due to our expertise across both property development and SME trading deals, we were able to create a bespoke facility that will enable Bain Capital Credit and Orka to acquire and refurbish both the hotel and the residential units, all under one facility. While it is difficult to forecast the near-term fortunes of the UK hotel market, domestic leisure demand is expected to lead the recovery in the sector, with markets that traditionally receive a greater share of domestic tourism, seeing occupancy recover first.”
OakNorth Bank was advised on the transaction by Allen & Overy.