Two investment heavyweights acquire Mayfair Hotel and secure funding for refurbishment

Two funding heavyweights have secured funding for the acquisition and refurbishment of Park Lane Mews Hotel in Mayfair.

Bain Capital Credit and Orka have entered into an agreement with OakNorth Bank for a debt finance facility to take over the 72-bedroom hotel in Mayfair and 17 adjacent residential units.

Park Lane Mews Hotel was previously owned by Genting Casinos.

The companies now plan to refurbish and reposition the hotel, with a project set to include the redesign of the bedrooms and lobby, restaurant and bar spaces.

Bain Capital Credit is a global credit specialist with $43.7B in assets under management, while Orka is a pan-European alternative investment and advisory firm.

Fabio Longo, managing director at Bain Capital Credit, commented: “We are delighted to have acquired this fantastic hotel in such a prime location in partnership with Orka. This further enhances the substantial real estate portfolio we have built throughout Europe, which we are actively growing through attractive investment opportunities. The team at OakNorth Bank were able to put together a single facility that captures both the acquisition and refurbishment of the hotel, allowing us to focus on the repositioning of the assets, and move quickly without interruption.”

Oskar Sköldberg, co-founding partner at Orka, further commented: “We are thrilled to have closed our second transaction together with OakNorth this year and are excited to progress with the business plan together with Bain Capital Credit. The transaction underpins our strategy to acquire fundamentally good assets in good locations with strong down-side protection and outperformance potential.”