OakNorth Bank – the UK bank for entrepreneurs, by entrepreneurs – has provided a bespoke debt finance facility to Bain Capital Credit and Orka to support the acquisition and refurbishment of the Park Lane Mews Hotel, a 72-room four-star hotel, and three residential buildings comprising of 17 units in Mayfair.
The works will include the refurbishment of the guest rooms and communal areas, including the lobby, bars and restaurants. Both the hotel and the residential buildings are in the heart of Mayfair by Hertford Street, Stanhope Row and Market Mews. The prime central London location will ensure the hotel is popular with tourists, while the residential units will be attractive to a broad range of residents including high net worth individuals.
Bain Capital Credit is a leading global credit specialist with $43.7B in assets under management. It invests across the full spectrum of credit strategies, including: leveraged loans, high-yield bonds, distressed debt and special situations, direct lending, structured products, non-performing loans (NPLs) and equities. Meanwhile, Orka is a pan-European alternative investment and advisory firm that sources and manages investments in real estate and asset backed businesses on behalf of, and in partnership with, some of the world’s largest institutions.
Fabio Longo, Managing Director at Bain Capital Credit, commented: “We are delighted to have acquired this fantastic hotel in such a prime location in partnership with Orka. This further enhances the substantial real estate portfolio we have built throughout Europe, which we are actively growing through attractive investment opportunities. The team at OakNorth Bank were able to put together a single facility that captures both the acquisition and refurbishment of the hotel, allowing us to focus on the repositioning of the assets, and move quickly without interruption.”
Oskar Sköldberg, Co-Founding Partner at Orka, further commented: “We are thrilled to have closed our second transaction together with OakNorth this year and are excited to progress with the business plan together with Bain Capital Credit. The transaction underpins our strategy to acquire fundamentally good assets in good locations with strong down-side protection and outperformance potential.”
Deepesh Thakrar, Senior Director of Debt Finance at OakNorth Bank, continued: “Due to our expertise across both property development and SME trading deals, we were able to create a bespoke facility that will enable Bain Capital Credit and Orka to acquire and refurbish both the hotel and the residential units, all under one facility. While it is difficult to forecast the near-term fortunes of the UK hotel market, domestic leisure demand is expected to lead the recovery in the sector, with markets that traditionally receive a greater share of domestic tourism, seeing occupancy recover first.”
OakNorth Bank was advised on the transaction by Allen & Overy.
Notes to editors
About OakNorth Bank plc
Launched in September 2015 and founded by entrepreneurs, OakNorth Bank provides fast, flexible and accessible debt finance to the UK’s Missing Middle.
It has borrowers across a variety of sectors, including: healthcare (nursing homes and retirement villages), consumer goods, vehicle and parts manufacturing, capital goods manufacturing, household professional services (including educational services), nurseries, business support services, hospitality and recreation (including hotels, resorts, restaurants and bars, fast food outlets and limited service restaurants), SME residential and commercial property development and investment.
It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Visit www.oaknorth.co.uk for more information.
About Bain Capital Credit
Bain Capital Credit is a leading global credit specialist with approximately $44B in assets under management. Bain Capital Credit invests up and down the capital structure and across the spectrum of credit strategies, including leveraged loans, high-yield bonds, distressed debt, private lending, structured products, non-performing loans and equities, and real estate special situations. Our team of more than 240 professionals creates value through rigorous, independent analysis of thousands of corporate issuers around the world. In addition to credit, Bain Capital invests across asset classes including private equity, public equity and venture capital, and real estate, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.
Visit www.baincapitalcredit.com for more information.
Orka is a technology-driven alternative investment and advisory firm, founded by Raoul Malhotra and Oskar Sköldberg, that sources and manages investments in real estate and asset-backed businesses on behalf of, and in partnership with, some of the world’s largest institutions. Orka has a particular focus on manage-to-core strategies in gateway cities across Europe. Orka’s purpose-driven club model gives a wider range of investors direct access to institutional-quality opportunities.
Visit https://orka.club/ for more information.