PPHE Hotel Group said on Wednesday that it has obtained a £180 mln (€204 mln) syndicated facility from Israeli lender Bank Hapoalim for the development of art'otel London Hoxton.
The initial maturity date of the facility is April 2024 although there are provisions, subject to certain conditions, to extend the facility by two periods of three years each.
The loan bears a floating interest rate, reflecting an interest rate of 4.191%, reducing following two consecutive quarters after practical completion of the hotel.
The facility will be secured by mortgages over the ownership interests in the site and security over the shares in certain group companies that own such interests in the site.
PPHE said that the total project costs remaining for completion stand at £200 mln. ‘The Group has contributed a material part of its equity commitment for this project as required under the Facility and therefore does not expect a material outflow of cash in respect of this project until July 2022,’ it added.
The development will include a new 27-storey building to accommodate 343 hotel rooms and suites, five floors of office space, a gym, swimming pool and wellness facilities and an art gallery space.
Boris Ivesha, president and CEO of PPHE said: 'We are pleased to have secured funding to develop art’otel london hoxton with Bank Hapoalim which has been a long standing partner of the Group funding several of our other key properties, including Park Plaza Westminster Bridge London which opened in 2010.’