Barings, alongside Fairfield Real Estate Finance (FREF), has provided a €70.125 million (62.5% LTV) investment facility to JMK Group, secured by the Holiday Inn Dublin Airport hotel.
The hotel, which has 421 rooms, was developed by the JMK Group and opened in 2021. The investment loan refinances the existing development facility provided by FREF to finance the construction of the hotel. Barings and FREF, which provided a senior loan and a junior loan respectively, agreed to the facility for a term of four years.
Syndication of the loan was arranged by Brotherton, who brought Barings into the facility as lead lender. The loan marks the latest in Barings’ property debt business in Ireland, having entered the logistics market in the heartland of the Western European country late last year with two loans worth a total of around 225 million euros.
“With our real estate debt business in Europe continuing to grow, the addition of this loan secured by such a well-located asset in Ireland is the latest addition to our portfolio. As our loan portfolio grows, we look forward to identifying new investment opportunities,” said Chris Bates, Managing Director and Head of European Real Estate Debt Origination at Barings.
“We are delighted to enter into this loan with Barings and continue to support the growth of the JMK Group. Having supported the JMK Group throughout the development phase, it is great to see this hotel open and go to market, with the potential to become one of Ireland’s premier hotels,” added Chris Davison, Head of origin of transactions at FREF.
“We thank Fairfield for believing in JMK and the Holiday Inn Dublin Airport project by supporting us through the Development Loan. We are pleased that they have remained under the Investment Loan. We are delighted to start a new beginning with Barings. We look forward to making this hotel one of the best in Ireland,” commented John Kajani, Founder and CEO of JMK Group.
“We are delighted to support FREF in the syndication of the entire loan they initiated with the JMK group and to call on Barings to take the senior tranche secured by this prime asset. We see more and more loan funds looking to bring senior lenders on board as loan lenders struggle to maintain the levels of leverage and pricing they have found themselves at over the past few years. years,” concluded Tim Vaughan, General Manager of Brotherton.