Firethorn secures loan from Grosvenor for York hotel deal
Firethorn Trust has secured an £18m debt package from Grosvenor to finance its investment in the Malmaison York hotel.
The 150-bedroom hotel at at 2 Rougier Street is operated by Malmaison and Hotel Du Vin on a 35-year lease. Firethorn bought it from Lothbury Property Trust in June.
The asset is the first hotel in Firethorn Living’s portfolio, alongside two purpose-built student accommodation projects and a central London office-to-residential scheme.
Firethorn Trust has secured an £18m debt package from Grosvenor to finance its investment in the Malmaison York hotel.
The 150-bedroom hotel at at 2 Rougier Street is operated by Malmaison and Hotel Du Vin on a 35-year lease. Firethorn bought it from Lothbury Property Trust in June.
The asset is the first hotel in Firethorn Living’s portfolio, alongside two purpose-built student accommodation projects and a central London office-to-residential scheme.
Richard Whitby, chief financial officer at Firethorn Trust, said: “The confidence that Grosvenor has shown in this asset underscores its strong investment potential, bolstered by a long-term lease with a premier hotelier in an exceptional location. Grosvenor’s wider expertise as a developer and asset manager make it an ideal lending partner for this asset.”
Steph Ball, investment director at Grosvenor, said: “We saw an opportunity to finance a high-quality asset, with a strong operator, and were able to adapt our strategy to do our first investment loan. This helps to diversify our existing ‘residential development’ portfolio, and we are pleased to be working with a fantastic new partner with ambitious growth plans.”
Grosvenor has stepped up its lending, revealing plans this year to put £900m to work in residential debt deals over the next decade.
Firethorn Trust was advised by JLL and Maples Teesdale; Grosvenor was advised by CBRE Lending and Freeths.
