PRESS RELEASE
BANK LEUMI (UK) PLC
BANK LEUMI (UK) PROVIDES FUNDING FOR PRESTIGIOUS NEW BERLIN HOTEL DEVELOPMENT
London
08th April 2010
In a deal completed in February 2010, Bank Leumi (UK) Plc is providing funding to support the development of a major hotel project in central Berlin by Precise Hotels.
With its head office in Berlin, Precise Hotel Collection operates in the German hotel real-estate market and has already managed the process of acquiring eight hotels located throughout Germany during the past two years. The group is also active in hotel management and branding.
Bank Leumi (UK) has provided a €23 million Euro financing facility to assist with the purchase and subsequent conversion of this landmark building into a hotel. The funding takes the form of a loan over five years and will support both the acquisition of the property and its conversion into a hotel.
The property is centrally located in the Mitte area of Berlin and has significant historic value. Dating from 1933, the former post office was the world’s largest institutional building of that time and it is now listed as a protected monument.
The project will be completed to a high four star standard and it is intended that the hotel will be branded by one of the leading international hotel chains. It will offer 280 hotel bedrooms, a restaurant, bars, lounges, conference facilities and a spa and fitness area. In addition, nine apartments on the top floor will be sold.
Ron Ben Haim, CEO of Precise Hotels, already knew the property team and directors at Bank Leumi (UK) and from past experience felt confident in the Bank’s ability to finance hotel acquisitions in Germany: “We fully trust Bank Leumi’s professional approach and know that the support we will receive throughout our relationship will be first class.”
As with many financing opportunities of this scale, there were technical and legal challenges to overcome. Ron Ben Haim adds: “By working closely with the property team we were able to overcome these difficulties through their helpful support and mutual trust. Whilst we may not have always achieved our funding targets, at all times throughout the sales process we were convinced that the Bank’s decisions and reasons behind them made good sense. Their offer and conditions were clearly presented which gave us confidence that the approval process would go smoothly and without delay, creating the successful outcome we needed.”
Malcolm Bloom, Senior Manager, Property Finance at Bank Leumi (UK) comments: “This project is set to take advantage of the recent and projected growth in the German tourism market for both business and recreational visitors. The client has already enjoyed much success in this area and we look forward to supporting the development of this unique building into a high quality and very distinctive hotel.”
