Firethorn Trust has secured an £18m debt package from Grosvenor to support its investment in the Malmaison York hotel, which it acquired in June.
The hotel offers 150 luxury guest rooms, a rooftop sky bar with panoramic views across the city, ‘Work + Play’ facilities and an on-site spa and gym.
It is the first hotel to sit within the Firethorn Living portfolio, alongside two purpose-built student accommodation (PBSA) developments and a Central London office-to-residential conversion.
Richard Whitby, chief financial officer of Firethorn Trust, said: “The confidence that Grosvenor has shown in this asset underscores its strong investment potential, bolstered by a long-term lease with a premier hotelier in an exceptional location. Grosvenor’s wider expertise as a developer and asset manager make them an ideal lending partner for this asset.
“At Firethorn, we have a strong track record of making strategic acquisitions that deliver attractive and secure returns, and Malmaison York is a valuable addition to our portfolio. We are delighted to collaborate with Grosvenor on this investment. This financing demonstrates Firethorn’s strength as a sponsor and our ability to secure favourable financing options, in today’s dynamic real estate market.”
Steph Ball, investment director at Grosvenor, added: “This transaction ticks a lot of boxes for us. We saw an opportunity to finance a high-quality asset, with a strong operator, and were able to adapt our strategy to do our first investment loan. This helps to diversify our existing ‘residential development’ portfolio, and we’re pleased to be working with a fantastic new partner with ambitious growth plans.”
Firethorn Trust was advised by JLL and Maples Teesdale and Grosvenor was advised by CBRE Lending and Freeths.
