Real estate funding specialist Ask Partners and OakNorth Bank have provided a £56 mln (€67 mln) senior development loan to privately owned, European property investment, asset and development management company RE Capital.
RE Capital will use the loan to fund the construction of a mixed-use hotel-led scheme in Clerkenwell, central London, on the site of a former Victorian school building and car park. The scheme will comprise a new build 153-bed hotel, plus an extension and remodelling of the existing Victorian schoolhouse to include 18,700 sq ft (1,750 m2) of Grade A office space and nine new-build affordable residential units. The total development will be 74,000 sq ft.
Planning consent was granted in January 2020 for a 153-bed ‘affordable luxury’ scheme and a pre-let agreement is already in place between RE Capital and German hotel group, Ruby, for a 30-year term.
Construction has commenced, with HG Construction appointed as contractor. The offices are due to be completed in February 2023, and the hotel and residential will follow in July.
Simon Banks, head of UK at RE Capital commented: ‘We are excited to be launching the construction phase of this mixed-use scheme, which will bring significant regeneration to the local area. The development will be finished to exceptionally high sustainability, wellness and connectivity standards, focusing on cutting-edge interior design for the newly evolving workplace, alongside the quality that Ruby Hotels will deliver as a highly reputable brand.’
Daniel Austin, Co-founder and CEO of Ask said, ‘Having funded a number of hotel and office schemes this year, we are fully confident in the recovery of both these markets post-Covid, as the current take up of office space and steady rise in hotel occupancy proves. Having provided a £12.5 mln bridge loan against this site in April 2020, we were pleased to continue our involvement in this excellent scheme by funding the development phase. I look forward to seeing the plans come to fruition.’
RE Capital was advised by Katten Muchin Rosenman and JLL. ASK and OakNorth were advised by Mischon de Reya.