UK-based specialist debt investor LaSalle Residential Finance has agreed to lend £50 million to Melford Capital Partners to redevelop a hotel in Cambridge, according to a statement from the lender.
The financing is the £440m fund’s seventh loan and will enable Melford to refurbish and expand the four-star University Arms Hotel, which overlooks Parker’s Piece in the historic town.
“We’re delighted to be working with Melford on this exciting project which marks a milestone for LRF with its first hotel development loan. We continue to back high-quality sponsors and developments throughout the UK in student housing and hotels, as well as further residential projects within the M25,” said LaSalle’s head of debt investments and special situations, Amy Aznar.
The fund closed last year and focuses lending on student housing in the UK’s main university towns. Its remit also includes residential projects in London and hotel developments.
LaSalle also has a European debt platform providing a range of instruments including senior and mezzanine finance, capital expenditure and development debt, acquisition loans as well as preferred equity investments.