Clydesdale and Yorkshire Banks have unveiled a new funding package for a major hotel project in Central London.
The new 207-bed Hotel Indigo development is a joint venture between real estate investment managers Meadow Partners and Roquebrook, a property development company specialising in the hotel sector.
The Banks are providing debt finance of £31.25m towards the construction of the new hotel which is located at Aldgate Place, one of the capital’s growth areas.
The two-acre site is a mixed use scheme located close to Aldgate East tube station. As well as the hotel, the development will include 463 new homes and retail and commercial outlets.
The new Hotel Indigo, part of the Intercontinental Hotels Group (IHG), is scheduled to open in January 2017.
Simon Blakeborough, Managing Director, Roquebrook said: “We’re very excited to be bringing Hotel Indigo London - Aldgate to East London. This area is so alive and is made up of a melting pot of different cultures, cuisines, art and architecture. It’s a fantastic place to visit whether you are travelling for business or leisure.
“Clydesdale and Yorkshire Banks have demonstrated an innovative approach to structuring development finance and we look forward to growing our partnership further.”
Shona Pushpaharan, Head of Business and Private Banking for the Hospitality and Leisure sector at Clydesdale and Yorkshire Banks, said: “The Aldgate Place project is a high quality development and will further enhance what is already an increasingly dynamic and popular area of Central London.
“This is one of a number of similar deals we’re undertaking in hospitality and leisure which demonstrate our commitment to development finance.
“It’s also clear evidence of Clydesdale and Yorkshire Banks’ approach to business lending which focuses on a range of specialist areas including healthcare, transport, insurance, manufacturing, professional services and agriculture as well as hospitality and leisure.”
Additional services were provided to the joint venture partners by Savills Private Finance (SPF), the financial services division of Savills plc.