Cohort Capital and King Street Capital Management have in partnership, with funds managed by Apollo, completed a £348 million senior loan facility to support the refinancing of The Park Tower Hotel, a landmark, 271-key freehold hotel located in Knightsbridge, London.
The transaction refinances debt initially provided by Cale Street Partners and continues Cohort Capital and King Street’s partnership with the property’s long-term owners.
It follows a £68 million mezzanine facility completed by Cohort Capital in July, which helped reduce and partially repay existing debt, providing additional time to secure further refinancing, as well as a separate transaction for the same sponsor in January that refinanced Arlington House, a residential-led, mixed-use asset in St James’s, London.
Park Tower is a 16-storey property built in 1973 that includes a casino and restaurant Nusr-Et. Its proximity to Hyde Park, substantial footprint, and redevelopment potential offer a combination of attributes that make it uniquely positioned for long-term value creation.
The business plan leverages Cohort Capital and King Street’s proven track record of optimising prime properties in the hospitality and residential sectors.
Park Tower is Cohort Capital’s largest loan to date and marks the second collaboration with King Street Capital. It is a significant milestone for the UK real estate lender, which has lent more than £1.7 billion since launching in 2019.
Rob Pritchard, Chief Investment Officer at Cohort Capital, commented:
“Park Tower represents a combination of scale and high repositioning potential in London’s prime hospitality market. Our approach supported the sponsor’s strategy and enabled us to structure a facility that unlocks the asset’s long-term value. This transaction underscores Cohort’s ability to execute on complex, large-scale financing in partnership with leading institutional stakeholders and reflects our growing capacity to support borrowers across the UK real estate market.”
Paul Brennan, Partner and Co-Head of Real Estate at King Street Capital Management, commented:
“Park Tower is a landmark Knightsbridge hotel. This transaction plays to our structuring expertise and focus on high-quality hospitality and residential opportunities, delivered 97 Park Lane – London – W1K 7TGwith disciplined execution. We’re pleased to partner with Apollo and Park Tower ownership, further underscoring our collaborative approach to working with experienced sponsors and lenders on high-quality, complex assets.”
King Street and Cohort Capital were advised by Simpson Thacher & Bartlett LLP and Mishcon De Reya LLP, while Linklaters advised Apollo. The sponsor was advised by Taylor Wessing and Mutual Finance Ltd.
