Hermes Investment Management (Hermes), the £30.8 billion manager, has completed a seven-year, £120 million loan for its real estate debt strategy. Hermes has provided senior financing to Firmdale Holdings to refinance existing indebtedness secured by the Ham Yard Hotel in Soho, W1D.
The loan provides further support to the sponsors for expansion of the business and is the second hotel financing completed by Hermes Real Estate Debt Strategy since its inception in February 2015. The £120 million loan brings the total amount Hermes has invested in the UK real estate senior debt market to £485 million across 15 loans.
Vincent Nobel, Head of Real Estate Debt, Hermes Investment Management, said: “Providing funding to help support Firmdale’s expansion following the success of Ham Yard Hotel, appeals to our investment strategy of delivering holistic returns. The hotel is a great destination created out of a previously disused part of central London. Firmdale’s track record as a best in class manager of boutique hotels gives us great confidence in its ability to manage this asset, while continuing to grow the Group.”
Tim Kemp, CEO, Firmdale Holdings, commented: “The Firmdale team is delighted to have an association with Hermes. Hermes has been thoroughly professional and supportive during the due diligence process and a pleasure to do business with. Firmdale can now look forward to carrying out further high quality developments.”
Firmdale was advised by JLL. Chris Holmes, Lead Director, JLL Debt Advisory, added: “We are pleased to have advised on this financing which is our second transaction with Firmdale this year, having also arranged financing for its New York hotels in October.”
