EdR REIM finances repositioning of Hotel Londra
Edmond de Rothschild REIM is providing a EUR 28.3 million loan through two funds for the refinancing and renovation of the Hotel Londra in the center of Florence.
The loan for the repositioning of Hotel Londra is being provided by Edmond de Rothschild REIM (EdR REIM) through the Edmond de Rothschild European High Yield I Real Estate Debt Fund and a separate fund managed for a German insurance group. The financing has been structured in the form of senior secured bonds in which both funds invest jointly, EdR REIM says.
According to Ralf Kind, Head of Real Estate Debt at EdR REIM, the transaction is the first financing under the pan-European credit strategy in Italy and also the first in the hotel sector. Four real estate debt investments had already been made in Germany, France and the Netherlands.
Hotel Londra has been owned by the investment company Eurazeo since December 2020 and is managed by Grape Hospitality. The property is located in the center of Florence, close to the train station and the city's main cultural attractions. It is currently undergoing extensive renovations to transform it into a four-star hotel in the upscale lifestyle category with 160 rooms. It is scheduled to reopen under the Intercontinental Group's Indigo brand in the fourth quarter of 2023.
According to EdR REIM, a further equity closing for the European High Yield I Real Estate Debt Fund was completed in March. The current equity commitments for the fund thus amount to over EUR 160 million. The final closing with a target size of 300 million euros is expected to be reached in December. (ah)
