AIG is closing in on a refinance of four London assets owned by Montcalm Luxury Hotels.
The US insurer is close to extending £330m to the company, owned by the Canadian Lalji family, to refinance three hotels and one serviced apartment block that total 433 bedrooms.
The 10-year loan reflects a loan-to-value of 55% against the £600m portfolio. The senior, fixed-rate loan is priced in the region of 2%.
The deal refinances the original debt issued by Barclays and HSBC, which is considerably more expensive.
The loan is secured against the Montcalm London Hotel, W1; the Marble Arch by Montcalm, W1; the Montcalm at the Brewery, near Moorgate, EC2; and adjoining short-term serviced apartment block London City Suites, EC2.
Montcalm began exploring a refinance in September last year. At the time the family also secured £155m in long-term fixed-rate finance for its Access Self Storage assets from Pricoa Mortgage Capital.
AIG has issued relatively few loans in the UK market over the past year but these few have been substantial.
In December it provided a £900m loan to refinance Camden Market owner Market Tech and last October it issued £315.6m towards the refinance of Secure Income REIT’s portfolio.
It has also been in talks to lend £250m to develop Consolidated Developments’ 250,000 sq ft scheme on Denmark Street, WC2, near the new Tottenham Court Road Crossrail station.
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