Cohort Capital completes £20m Soho serviced apartment refinancing
The 24-month facility refinances an existing private bank loan and releases extra equity against a freehold at 37 Golden Square, Soho.
Cohort Capital has completed a £20m senior loan secured against a luxury serviced apartment building in Soho.
The 24-month facility refinances an existing private bank loan and releases extra equity against a freehold at 37 Golden Square, Soho, which includes 22 serviced apartments.
The sponsor, a high-net-worth (HNW) individual, needed refinancing after the private bank decided the asset no longer met its lending criteria, despite strong operational performance.
The borrower acquired the property in 2017 and redeveloped it into a luxury serviced apartment scheme.
The 27,125 square feet freehold covers eight floors and includes a triplex penthouse with two private terraces and dedicated lift access.
Matt Thame, founder and CEO at Cohort Capital, said: “Increasingly, we are seeing private banks step away from high-quality assets because their lending criteria have changed or because they’re focusing lending on clients with larger assets under management.
“This dynamic is generating significant demand for flexible alternative capital to fill refinancing shortfalls, as experienced borrowers seek certainty of execution despite owning assets that are performing strongly.
“Serviced apartments and hospitality assets have demonstrated strong fundamentals and are managed by increasingly sophisticated operators.”
Thame added: “At the same time, parts of the traditional buy-to-let market are becoming more challenging as regulation evolves, creating opportunities for professionally managed operational assets.
“This is an area where we expect to deploy significantly more capital over the coming years, recognising that underwriting operational real estate requires specialist expertise to properly evaluate underlying performance and forward business plans.”
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