CB Richard Ellis arranges €60 million financing

CB Richard Ellis announced today that its EMEA Debt Advisory and CBRE Hotels teams have collaborated to arrange €60 million financing for Framon Real Estate, the hotels real estate subsidiary of Gruppo Franza.

The capital is for the refinancing of the Framon Real Estate leisure hotel portfolio and is significant in the current market given lenders traditional caution towards financing leisure hotel properties. The hotel portfolio is located in Italy and managed by NH Hotels. It incorporates four hotels, including Grand Hotel Timeo and Hotel Villa Sant’Andrea in Taormina, Grand Hotel Bristol in Rapallo, and Hotel Liberty based in Messina. Grand Hotel Timeo, Hotel Villa Sant’Andrea and Grand Hotel Bristol all form part of the new NH luxury resort brand EdenH.

CBRE provided prospective lenders with in-depth analysis of the hotels performance, including local leisure market conditions and competition, location advantages, cash flow modeling analysis and debt structuring. The final terms were agreed with WestLB, Westdeutsche ImmobilienBank and UniCredit and surpassed client expectations at every level.

Natale Giostra, Director, EMEA Debt Advisory, CB Richard Ellis, said: “In current market conditions this is an important deal given lenders more cautious approach to financing leisure hotel properties. It proves that despite the current financial climate, debt capital is still available for clients operating in a broad array of sectors, if they have access to the right advice”.

Barbara Pereira, Managing Director, EMEA Debt Advisory, CB Richard Ellis, added: “Local market conditions and lending practices vary greatly and local understanding and knowledge remain vital to getting deals done. For this particular transaction we were able to bring together hotel sector and debt advisory specialists to secure a lower than expected cost of financing for Framon Real Estate.”