The 36-month loan facility is being used by the borrower — which was advised by Arc & Co — to refinance an existing loan and fund an extension to the hotel, which will provide a further 50 bedrooms.
The expansion — for which Ability Group received planning permission — includes upgrades to the terminal building, parking and public transport links, allowing for an increase in both the number of flights departing from the airport and the total annual passenger capacity from 10 million to 12 million passengers per annum.
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Daniel Austin, CEO and co-founder of ASK, said: “We were delighted to work with Arc & Co on this transaction to provide Ability Group with the funding required to expand this successfully operated hotel, in line with the airport’s growth plans.
“The proposed build, in keeping with the original construction will extend the hotel without disrupting the hotel’s ongoing operations.”
Ed Horn-Smith, managing director at Arc & Co, added: “Situations such as this — featuring not only the refinancing of an existing facility, but also providing development finance to extend a high-performing asset — demand a lender with a firm understanding of the underlying fundamentals and the flexibility to provide a bespoke solution.
“ASK Partners has a strong track record on deals such as this, and it is fantastic to reach a position that works for all parties.”
“We look forward to working with both Ability Group and ASK Partners on future projects.”