Prudential Mortgage Capital Company has arranged a $165.8 million loan to refinance The Waldorf Hilton, a historic luxury hotel located in the heart of London’s theater district. The deal represents the firm’s seventh commercial real estate loan since launching its European business in 2012 and its fifth in the UK. Prudential Mortgage Capital Company is the commercial mortgage lending business of Prudential Financial, Inc. (NYSE:PRU).
The Waldorf Hilton is wholly owned by the Bhatia family, established London hoteliers with several prominent hotel holdings across London. The family is led by Gulshan Bhatia who has more than 40 years experience operating and owning London hotels. The Waldorf Hilton was originally purchased for the family’s portfolio in 2007 and Prudential Mortgage Capital Company’s 15-year, fixed-rate loan will be used to refinance existing debt.
This financing brings Prudential Mortgage Capital Company’s secured commercial real estate loan portfolio in Europe to nearly $1 billion since its first European loan in June 2012. It is also the first loan under the new Friends Life investment mandate announced in July, 2013.
Under the $577.7 million discretionary mandate, Friends Life will participate in large loans originated by Prudential Mortgage Capital Company, boosting the firm’s single loan limit in the UK to more than $280 million. The Friends Life co-investment program targets senior secured, fixed-rate loans with maturities of between 5 and 15 years, with appetite for assets in London as well as regional England and Wales.David Gingell, director of European originations for Prudential Mortgage Capital Company said, “The Waldorf Hilton continues to outperform the market in a number of key metrics and its trading performance proved resilient through the recent economic cycle. The location of the property in the heart of London’s theatre district and its proximity to Covent Garden will act as long term demand drivers for the hotel. These characteristics coupled with the opportunity to provide long term financing to a family who has built their reputation in hotels made this an extremely attractive transaction.”