Private credit and real estate specialist investor Veld Capital has successfully provided a senior secured loan to hospitality group Gr8 Hotels.
The loan of €63 mln has been issued to refinance a stable portfolio of ten hospitality assets in the Netherlands.
The portfolio, aggregated through a combination of acquisitions and property development over the past nine years, provides diversified income, both through management contracts and standard leases.
It comprises affordable accommodation located in key areas across the Netherlands, including Amsterdam, Rotterdam, Maastricht and Breda, as well as food and beverage offerings provided by tier-one operators such as Starbucks, Burger King and La Place among others.
Gr8 Hotels was founded by three Van der Valk family members, the founders and owners of the Van der Valk hotel group, which operates more than 100 hotels globally.
This refinancing by Veld will allow GR8 Hotels to continue to drive their strong operational performance and benefit from the current positive market dynamics of the Dutch hospitality sector.
The transaction reflects a growing opportunity set for Veld to provide tailored credit solutions to experienced owners of high-quality assets across Europe, as conventional lenders seek to retrench from the market.
Sebastien Wigdo, partner at Veld Capital, said: 'The strong quality and performance of the assets, coupled with the current dynamics of the Dutch hotel market, characterised by strong operational growth and limited new supply, make this portfolio an ideal investment for Veld Capital.
'This financing structure illustrates our ability to identify a gap in the market where our capital can be deployed in situations previously covered by traditional lenders. As refinancing requirements expand, we expect to continue to play an active role in both sourcing and executing attractive credit investments backed by high-quality assets.'