The Edwardian Group London has received £375m of new finance to help drive forward the development of a new hotel in London, extend its Manchester property, and make future acquisitions.
Privately owned by Jasminder Singh, the group has secured £200m worth of debt from insurance company Metlife over a 20 year-term and £175m, seven-year facility from German bank Aareal Bank.
It has also secured ongoing finance for the 14-strong portfolio from existing lenders, HSBC (£47m) and Santander (£28m). The group currently owns and operates 13 hotels under the Radisson Blu Edwardian brand in London, Manchester and Guildford, as well as the May Fair hotel, near Piccadilly.
Peter Anscomb, senior corporate director for Edwardian Group London said that the company had been looking at opportunities for some time to work with lenders which have a greater understanding of the hospitality industry as opposed to historic bodies which no longer have the appetite to invest in the sector.
The company is looking to develop a 360-bedroom hotel on the site of the Radission Blu Edwardian Leicester Square hotel and Odeon cinema. Currently in the final stages of the planning process with Westminster Council, the proposed new hotel, which will incorporate a spa and two cinemas, is proposed to open around 2017.
Meanwhile, the group is also considering how to develop the former Theatre Royal in Manchester, alongside its 263-bedroom Radisson Blu Edwardian hotel, which it acquired in 2011.
Anscombe said that the hotels within the Edwardian Group were in good shape to following a strong year of business. "We have continually invested in the business, even during the down turn to ensure the hotels are continually developed, extended and fit for purpose and in a good position as business improves."
He added that there had been no adverse impact on either the hotels' operations or the refinancing of the group by the ongoing High Court case involving the family wealth of the Singh family. Jasminder Singh is currently fighting his father Bal Mohinder Singh's claim that under Sikh tradition he is entitled to a third of the family wealth.
"It is a private family matter," said Anscombe.
According to The Sunday Times Rich List 2013, the Singh family are worth £836m, although the court claim is said to be worth around £50m.