Starwood Capital has bought a £75m mezzanine loan secured against London & Regional’s Atlas Hotels portfolio.
Deutsche Bank and Bank of America Merrill Lynch sold the debt, having issued a whole loan of close to £390m against the portfolio of 47 Holiday Inn Express hotels bought by L&R from Lone Star in June.
The whole loan reflected a loan-to-value of 72% on the £538m price. The mezzanine loan’s detachment point is 57.5%.
Starwood’s listed debt fund, Starwood European Real Estate Finance, raised £73m to make the purchase.
A source said: “Competition for this, the first major mezzanine loan sale since Brexit, was a boost for this part of the market and for real estate financing.”
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