Aareal Bank and Henderson Park strengthen partnership through £275 million financing of Edinburgh and Dublin hotel portfolio

Aareal Bank and Henderson Park strengthen partnership through £275 million financing of Edinburgh and Dublin hotel portfolio

Wiesbaden, 24 October 2024 – Henderson Park and Aareal Bank are pleased to announce they have signed a c. £275 million financing loan secured against three hotels: the Curio Collection Caledonian Edinburgh, the Hilton Edinburgh Carlton and the Hilton Garden Inn Dublin City Centre. The hotels are owned by funds managed by Henderson Park and managed by its hotel operating platform Klarent Hospitality. Aareal Bank acted as the arranger, sole lender, and facility and security agent for this transaction.

With a rich history spanning over a century, The Caledonian Edinburgh is one of the most prominent hotels in the city. Affectionately known to locals as ‘the Caley’, the former Victorian railway hotel overlooking the historic Edinburgh Castle has become the hotel of choice for many high-profile figures over the years, having been visited by the likes of Judy Garland and Barack Obama.

The Hilton Edinburgh Carlton, another historic hotel primely located on the corner of the famous Royal Mile, is minutes away from the Edinburgh Castle and famed Princes Street shopping, while the Hilton Garden Inn Dublin City Centre is a riverside hotel near the vibrant Temple Bar neighborhood, and within walking distance of many of Dublin's key landmarks.

The two Edinburgh hotels will undergo extensive renovations, including significant guest room extensions, to elevate the guest experience even further.

This landmark deal marks a new milestone in the long-term partnership between Aareal Bank and Henderson Park, a leading international private equity real estate firm primarily focusing on major capital and high-growth cities. The firm has invested over $14 billion across 10 countries, specializing in unlocking value through keen asset management and working through complex situations.

"We are pleased to continue our long-standing partnership with Henderson Park on this remarkable transaction," said Michelle Weiss, Head of Hotel Properties at Aareal Bank. "This deal showcases our expertise in delivering tailored solutions for high-quality hospitality assets in prime locations.”

Christophe Kuhbier, Head of Investments, Europe at Henderson Park, added: "This financing is an important milestone in our investment strategy for this portfolio and a testament to the quality of the hotels securing the loan and their future potential to be unlocked via Klarent Hospitality’s active asset management. Aareal Bank is an experienced and knowledgeable hotel lender who has been a trusted partner of ours for many years and we are pleased to be working with the team there again."

Key advisors in this transaction include DLA Piper and Paul Hastings, serving as legal advisors to Aareal Bank and Henderson Park respectively. CBRE acted as Aareal Bank's external valuation advisor.
 

Contacts for the media:

For Aareal Bank
Thomas Rutzki.
Phone: +49 611 348 2947
thomas.rutzki@aareal-bank.com

For Henderson Park
FTI Consulting
Richard Sunderland, Andrew Davis, Ellie Sweeney
+44 (0)20 3727 1000
HendersonPark@fticonsulting.com

About Aareal Bank Group

Aareal Bank Group, headquartered in Wiesbaden, is a leading international property specialist. The Bank uses its expertise to identify trends, challenges and opportunities at an early stage, and to exploit them for the benefit of its stakeholders. Aareal Bank Group provides financing, banking and payment solutions for the property sector and related industries, and is present across three continents, Europe, North America and the Asia/Pacific region. Aareal Bank Group’s business strategy focuses on sustainable business success, with environmental, social and governance (ESG) aspects as an integral part of this strategy.

Aareal Bank AG comprises the business segments Structured Property Financing and Banking & Digital Solutions. The Structured Property Financing segment encompasses all of Aareal Bank Group’s property financing and funding activities. Here, the Bank supports its clients in making large-volume commercial property investments. The investment properties mostly comprise office buildings, hotels, shopping centres, logistics and residential property, as well as student apartments. In the Banking & Digital Solutions segment, Aareal Bank Group supports businesses from the housing, property management and energy industries as a digitalisation partner – combining extensive advisory services and product solutions with traditional corporate banking services and deposit-taking.

About Henderson Park

Henderson Park is a leading international private equity real estate fund manager. Since its formation in 2016, the firm has invested over $14 billion in building a portfolio of flagship real estate assets, with a presence in major cities and capitals in the United States, UK, France, Germany, Greece, Ireland, Italy, Poland, Portugal and Spain. Henderson Park seeks high quality assets in prime locations where it can identify the potential for unlocking or creating value through asset management and sustainability improvements, or by taking on and working in complex situations. The company’s current portfolio is diversified across various sectors such as multifamily, hospitality, student housing, logistics, office and retail, including several real estate development projects. Henderson Park strives to work and build long-term strategic relationships with the best local partners.

Henderson Park is a signatory of the UN PRI.

Visit www.hendersonpark.com for more information.