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UK: Hospitality real estate group PPHE has secured a £95.8 million refinancing facility with Aareal Bank for the Park Plaza London Riverbank.
The refinancing extends an existing facility – which PPHE signed with Aareal in 2016 – from its original maturity date of June 2026 to June 2030.
Under the new terms, the refinancing will “continue to attract an all-in fixed interest rate of 3.248 per cent until the original maturity date of June 2026. Following this, 85 per cent of the loan will bear a fully fixed interest rate of 5.72 per cent until maturity, with a competitive floating interest rate applying to the remainder of the loan.
“This compares with an all-in fixed interest rate of 3.248 per cent that applied under the terms of the existing facility.”
PPHE added that, under the new terms, the loan will “no longer be subject to amortisation which is expected to partially offset the impact of the increased interest on cash flow”.
Daniel Kos, chief financial officer of PPHE, said: “This extended facility continues our strong relationship with long-standing lender, Aareal Bank AG. The group’s high-quality and stable asset base in key city-centre locations, such as Park Plaza Riverbank in London, enable us to secure long term financing on attractive rates.”
Highlights:
- PPHE Hotel Group has secured a £95.8 million refinancing deal with Aareal Bank for Park Plaza London Riverbank.
- The agreement extends the loan maturity from June 2026 to June 2030, replacing the existing 2016 facility.
- Until June 2026, the loan retains its 3.248 per cent all-in fixed interest rate; afterwards, 85 per cent of the loan converts to a 5.72 per cent fixed rate, with the remainder on a floating rate.
- The refinanced loan is no longer subject to amortisation, helping cushion the impact of higher interest costs on cash flow.
