ICG-Longbow is financing Shiva Hotels’ £103m purchase of the car park at 74-77 Welbeck Street, W1.
The debt fund manager has supplied a loan of close to £80m, equating to a loan-to-value ratio of just under 80%.
With its funds under management total having increased to £3bn, the financier is now commonly issuing loans of this size, having previously targeted lower-ticket lending. It is also nearing a £1bn final close of its fourth fund.
It is expected that Shiva will refinance the loan once the asset progresses further through the development process. At this point, it is likely a new senior lender will be introduced, with Longbow providing a mezzanine loan.
Shiva and Longbow have already worked on a number of deals together.
Shiva intends to redevelop the West End car park into a 145- bedroom hotel based on designs drawn up by architects Sheppard Robson.
The project would add to the growing portfolio of hotel schemes the company has begun since it purchased Marlborough Yard in Poland Street, W1, for £55m in June last year.
Its other hotels under development include the 170-bedroom Kingsway Hall Hotel in Covent Garden, WC2; 51-bedroom Vandon House in Buckingham Gate, Victoria, SW1; 190-room Morley House on Holborn Viaduct, WC1; and Millennium Bridge House, EC4, a 348-bedroom scheme under development.
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