A landmark hotel to be built at Heathrow’s new Terminal Five has been funded to the tune of GBP 52.6million by the Royal Bank of Scotland International (RBS International) in Guernsey.
A landmark hotel to be built at Heathrow’s new Terminal Five has been funded to the tune of GBP 52.6million by the Royal Bank of Scotland International (RBS International) in Guernsey.
RBS International structured the total finance package for the development, enabling Rising Star LLP to acquire the land near Heathrow which they are now to transform into a 5-star hotel and conference centre.
‘This illustrates once again that the Island is not just one among many in the pack of international finance centres – Guernsey is at the very forefront,’ said Peter Niven, Chief Executive of GuernseyFinance – the promotional agency for the Island’s finance industry.
‘The Island boasts significant expertise across a number of sectors, not least banking and as this case highlights, including structured property financing. Guernsey’s providers in this field range from major players such as RBS International to boutique, niche operators. Benefiting from the support of a broad-based and highly skilled finance industry and the close proximity and positive collaboration of these businesses, they are growing a reputation for exceptional client solutions. It just serves as a reminder that G is for Guernsey, G is for banking.’
Ramesh Sachdev and his son Rishi Sachdev, representing Rising Star LLP, were delighted with the contribution of the Guernsey based banking operation.
Sachdev said: ‘When completed, this landmark hotel will be the jewel in our portfolio. It was a pleasure to work with the team at RBS International, who displayed great focus and control in ensuring this complex transaction was completed in a diligent manner within a tight timeframe.’
Simon Chandler, Director, Offshore Real Estate Finance at RBS International, said: ‘RBS International was able to structure a total finance package with a high degree of leverage, valued at a total of GBP52.6million. The facilities sanctioned provided an initial drawdown to support the site acquisition and will allow a second tranche to facilitate the two year construction programme for the hotel.
‘We worked closely with our colleagues in the RBS Hotel and Leisure team in London to structure the package but the deal was done out of RBS International in Guernsey. Providing lending services of this scale for such a high profile and prestigious development is excellent profile for Guernsey as well as the bank. It also helps to illustrate the wide range of financial services that are provided by the Island’s finance industry and it also shows that by investing in expertise in specialist sectors of banking, RBS International can diversify its offering and compete successfully for major international business.’
Construction of the 350-bedroom luxury property is due to commence towards the end of this year and is due to open towards the end of 2009.
