Barings Provides £165m Loan for The Cafe Royal Hotel, London

Date: March 2018

Location: Regent Street, London, UK

The Cafe Royal – Five star

No. of Keys: 159

Operator: Set Hotels, owned by Israel-based Alrov Group, who bought the Cafe Royal as a banqueting venue and completely refurbished it in 2012. Besides London they have The Conservatorium in Amsterdam and the art-deco Lutetia in Paris.

What: Barings Real Estate has provided a seven-year, fixed rate £165m loan secured against the Hotel Café Royal. The loan, which represents a 47% loan-to-value, is also secured against 16,000 sq. ft. of retail space fronting Regent Street, let to Nespresso, Lotus and Wolford. Chris Bates,
head of real estate core mortgage Europe at Barings Real Estate, managed the transaction.

Last month, Barings announced that it had financed the £201m acquisition of No. 1 Spinningfields ( a 92 metre office tower) in Manchester by a joint venture set up and managed by Schroder Real Estate Investment Management with an £81m loan…. A brand new development. No.1 Spinningfields offers WeWork flexible office space combined with state-of-the art business facilities and some of the finest hospitality offerings in Manchester, with over 260,000 square feet of office accommodation.

No.1 Spinningfields will also be home to Manchester’s most spectacular rooftop terrace bar and stylish contemporary restaurant, by D&D London, with elegant surroundings and stunning panoramic views across the city.

THPT Comment: Manchester is giving London’s West-End a run for it’s money…Just last month Barings was a seller of hotels – 7 US properties for US$650m, but remains as asset manager for the portfolio. Barings had more than US $304 billion of assets under management at the end of last year, according to its website. It was formed through the 2016 merger of four institutional affiliates of MassMutual, whose full name is Massachusetts Mutual Life Insurance Co.

Set may only have three hotels in The Collection, but they are gorgeous! our favourite hotel in Paris is The Lutetia…

First Seen: Property Team