Cohort Capital has handed a £73m loan to a Qatari-based group for the refinancing of the five-star NoMad Hotel in Covent Garden, WC2.
The 91-bedroom boutique hotel underwent a full refurbishment in 2018-20 led by Sydell Group, converting the 170,000 sq ft building into a hotel, restaurant, museum and bar.
The Grade II listed building was formerly Bow Street Magistrates Court and police station, which dates back to the 18th century. Previous “guests” have included Oscar Wilde, Emmeline Pankhurst and the Kray twins.
The bespoke debt facility, provided by Cohort, was used to refinance a syndicate of banks whose loan term was approaching expiry.
The business will continue to be operated by Sydell Group, which operates the US-based NoMad and other branded hotels, under a management agreement.
Cohort chief executive Matt Thame said “As banks retrench further from real estate debt markets, larger debt funds with flexible balance sheet solutions won’t get out of bed for anything less than £100m. This has opened up a space in the property finance market where Cohort is staying very active.
“There is no doubt however that markets are contracting, and we can safely say the residential and commercial real estate sentiment is not yet on the up – which is why we are remaining extra selective on the sponsor, strategy and location of the asset. The hotel room performance at the NoMad is strong, and the F&B concept and plan is a compelling one.”
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