£36.0 million
loan
6
month term
65%
loan to value
The finance
Having invested in the hotel’s operational business, Aprirose Real Estate Investment had secured an option to buy the asset on a sale and leaseback basis, at a previously agreed price. They already held a significant portfolio of Z-Hotel branded assets across the UK, so were looking to extend their holdings in the micro-luxury sub-sector.
A short-term loan was required to support the purchase, which was triggered by the asset’s operational performance reaching required benchmarks.
The result
The loan funded the asset acquisition and was completed within four weeks of its introduction to Octopus. The borrower received multiple offers to sell the asset during the loan term, but with strong performance growth, decided to refinance the asset and hold it in their investment portfolio. Octopus was pleased with the asset’s performance during the loan term, thus agreed to provide a loan extension in order to allow the borrower to negotiate the best available term finance for the hotel. Interest was serviced for the additional term, and the asset was competitively refinanced to a leading UK institution.
“We operate a dynamic structure at Aprirose and often identify opportunities that require rapid assessment and investment. The ability to deliver on our commitments provides us with a significant competitive advantage, so when we use third party funding, we need to know that our lender will deliver. Octopus understand commercial real estate extremely well, thus were able to act without hesitation and support our acquisition. We greatly value our relationship and have subsequently become a repeat client which speaks for itself.”
Manish Gudka, CEO, Aprirose Real Estate Investment