OakNorth provides £14m facility for hotel development site acquisition

Challenger bank OakNorth has completed a £14.4m loan to fund the acquisition of a cleared development site in London.

Real estate fund manager Frogmore will submit planning permission to develop a hotel less than a 10-minute walk from Waterloo and Southwark stations.

“Southwark has been experiencing a shortage in hotel room supply for several years,” said Jo Allen, chief executive of Frogmore.

“In Kensington and Chelsea, there are three times as many hotel rooms [and] in Westminster, there are more than seven times.

“Our hope is that we can secure planning permission to build a hotel here and help fill this gap with a new 275-bedroom hotel on the site.”

Frogmore’s last development in the hotel space – the five-star South Place Hotel – was sold to Chinese investors earlier this year.

The group currently owns assets such as the Notting Hill Gate Estate, Stratford Shopping Centre and Weston House in Holborn, and has transacted over £6bn of projects since 1995.

“Southwark’s regeneration in recent years has put this south London borough on the map and made it a prime location for homes, international tourism and business,” added Ben Barbanel, head of debt finance and Damien Hughes, property finance director at OakNorth Bank.

“We’re very proud to have been selected by Frogmore for this deal – the business has an incredibly strong track-record spanning more than five decades.

“We look forward to working with Frogmore on future projects and hopefully celebrating their planning permission approval very soon.”

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