Wiesbaden, 27 November 2023 – Aareal Bank announces the successful closing of a € 566 million refinancing facility with The Social Hub (TSH), together with two participating lenders, one of which being Rabobank. Operated under TSH’s hybrid hospitality concept offering co-working, events, hotel, extended-stay rooms and student accommodation, the cross-border portfolio comprises 13 properties across the Netherlands, Spain, France and the UK. Aareal Bank acted as the Arranger, Agent, and Security Agent of the senior loan, which is classified by Aareal as a Green Loan under its own Green Finance Framework.
With nearly 7,000 rooms across Europe and another 3,000 in the pipeline, The Social Hub, formerly known as The Student Hotel, has evolved into an enviable brand amongst tourists, students, and young professionals alike.
“We are delighted to establish this relationship with such a unique hospitality brand and operator as TSH,” comments Michelle Weiss, Head of Hotel Properties at Aareal Bank. “The distinction between traditional hotel services, co-working, co-living, student accommodation and retail is becoming blurred. Today, people live, work and travel differently; they crave that social aspect and sense of community. TSH offers just the right blend of liveliness, style, and function in a concept that has been proven to be both highly resilient and attractive."
Charlie MacGregor, founder and CEO of TSH, says: “We are pleased to share that once again, our unique hybrid model has proven itself, with the lenders showing strength and confidence in The Social Hub. We were delighted to be able to partner up with experienced lenders like Aareal Bank and Rabobank, who understand the demands of our business and demonstrate strong operational and local expertise. The successful refinancing of our portfolio will allow us to further invest in the growth and quality of our platform across Europe, with upcoming hotel openings in San Sebastian, Glasgow, Rome, Florence and Porto in the coming eighteen months.”
Lenders’ legal counsel, led by Van Doorne in the Netherlands, further comprised White & Case in Spain, Pinsent Masons in Scotland, and De Pardieu Brocas Maffei in France, while TSH was advised on this transaction by Clifford Chance. The valuation was carried out by CBRE.
Additional photographs for editorial use can be downloaded via the website of The Social Hub.
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