Edmond de Rothschild REIM finances repositioning of Hotel Londra

Florenz, May 2022

Edmond de Rothschild REIM, through the Edmond de Rothschild European High Yield I Real Estate Debt Fund and a separate fund managed for a German insurance group, has provided a €28.3 million loan for the Hotel Londra in central Florence . The loan will be used for refinancing and renovation.

Hotel Londra, owned by Eurazeo and managed by Grape Hospitality, is located in the city center of Florence, close to the train station and the city’s main cultural attractions. The hotel was acquired by Eurazeo in December 2020. It is currently undergoing extensive refurbishment and conversion into a 160-room 4-star superior lifestyle hotel. The hotel is scheduled to reopen under the Intercontinental Group’s “Indigo” brand in Q4 2023.

The financing has been structured in the form of senior secured bonds in which the two funds invest jointly. The closing was successfully completed on May 12, 2022.

Eurazeo is a leading global investment firm with expertise in private equity, private debt, real estate and infrastructure. It manages a diversified portfolio with EUR 31 billion of assets under management, of which almost EUR 22 billion on behalf of third parties, invested in 450 companies.

Grape Hospitality is a pan-European hotel platform founded in 2016 and majority-owned by Eurazeo. Grape Hospitality owns, operates and manages 106 franchised hotels with over 10,000 rooms and 70 restaurants in eight European countries.

Ralf Kind, Head of Real Estate Debt at Edmond de Rothschild REIM, states: “This transaction is the first financing under our pan-European debt strategy in Italy and also the first in the hotel sector. Having already made four real estate debt investments in Germany, France and the Netherlands, this demonstrates our team’s ability to identify and execute attractive investment opportunities across Europe, backed by strong and experienced partners and sound financing structures . We will further intensify our international fundraising activities in order to expand the pan-European High Yield Debt Fund, which is to be finally closed by the end of 2022.”

In March 2022, the Edmond de Rothschild REIM team completed another equity closing for its European High Yield I Real Estate Debt Fund, bringing the current equity commitments for the fund to over EUR 160 million. The final closing with a target of EUR 300 million is scheduled for December 2022.

Edmond de Rothschild REIM was advised by Gianni & Origoni (Simone D’Avolio, Maria Rosa Piluso), Mayer Brown (Alban Dorin) and Nauta Dutilh (Nicolas Bonora).

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