The loan has been made to investment firms Veld Capital and Maya Capital to support the development at 160 Blackfriars Road. A new 222-room hotel, operated by Motel One, will be constructed on the site with offices on the ground floor.

This facility will be used by the firms to refinance existing debt on the site, fund development of the hotel and cover initial operating costs.

OakNorth highlighted that other lenders will typically make the borrower take out different facilities to acquire the land, develop it and then refinance.

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“Both Veld and Maya Capital are well-established private equity firms with a demonstrated track record of developing assets and exiting well,” said Deepesh Thakrar, senior director of debt finance at OakNorth.

“They have found a strong and experienced operator in Motel One, and are well-located to attract the tourists they’re aiming for.

“We’ve been able to support Veld and Maya in the buy, build and stabilise under one agreement.

“This means they’ve been able to cut out the time needed to refinance once the hotel is built, saving them a big headache further down the line.”

OakNorth was advised on the deal by Louis Dewfall of Taylor Wessing.

Meanwhile, Veld Capital and Maya Capital were advised by Lisa Attenborough at Knight Frank and Gurinder Mann of Gowlings.