Located on St. Clement Lane, the office block is being acquired by hospitality business JMK Group.

JMK will use the co-loan to acquire the land and convert it into a 185-key hotel, subject to receiving planning permission.

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Deepesh Thakrar, senior director debt finance at OakNorth, commented: “This transaction represented an exciting opportunity to facilitate a new deal with an existing customer that has built up an excellent portfolio and track record for creating highly successful hotels, across the UK and Ireland.

“We look forward to continuing to support [JMK] with its future growth, in particular with acquisitions of new assets to further strengthen its portfolio.”

Sumeer Bose, director at REL Finance, added: “JMK is a prominent group with exceptional in-house capabilities to transform properties such as these.

“We are pleased to strengthen our existing relationship with OakNorth, whom we consider a strategic partner in CRE loans.”