RE Capital is to build a 153-bedroom hotel on the site of a former Victorian school building in Clerkenwell, E1, after getting a £56.2m loan to fund the scheme.
ASK Partners and OakNorth Bank have teamed up to provide the senior development loan.
The scheme will also include 18,700 sq ft of office space and nine new-build homes. The 74,000 sq ft development has already been prelet to German hotel group Ruby on a 30-year term.
RE Capital, which has described the hotel segment of the project as “affordable luxury,” said construction was under way, with HG Construction appointed as contractor.
The offices are due to be completed in February 2023, and the hotel and residential will follow in July.
RE Capital was advised by Katten Muchin Rosenman and JLL. ASK and OakNorth were advised by Mischon de Reya.
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