The international hospitality real estate group PPHE Hotel Group, which develops, own and operates hotels and resorts has announced it is entering into a syndicated facility agreement with Bank Hapoalim B.M. for a facility of up to £180M to fund 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 Facility bears a floating interest rate, reflecting an interest rate of 4.191 per cent. as at the date of this announcement, reducing following two consecutive quarters after practical completion of the Hotel.
The Facility contains customary debt service cover and loan to value financial covenants, applicable following practical completion of the Hotel, which must be complied with, subject to an ability to cure in certain circumstances through the injection of equity or prepayment (to the extent necessary) of the Facility.
The Facility will be secured by, among other things; mortgages over the ownership interests in the Site and security over the shares in certain group companies that own such interests in the Site. The lenders under the Facility benefit from completion and cost overrun guarantees provided by PPHE. Drawdown under the Facility is subject to certain conditions precedent being fulfilled.
