Firethorn Trust has secured a €21.4m debt package with Grosvenor. This financing will support Firethorn’s investment in the luxury Malmaison York hotel, which it acquired in June 2024.
Featuring 150 luxurious guest rooms, a rooftop sky bar offering sweeping city views, 'Work + Play' amenities, and an on-site spa and gym, this location is currently among the top performers in the Malmaison and Hotel Du Vin collection.
It is the inaugural hotel within the Firethorn Living portfolio, which also includes two purpose-built student accommodation (PBSA) projects and a conversion of an office building to residential in central London.
Richard Whitby, Chief Financial Officer of Firethorn Trust, commented: “The confidence that Grosvenor has shown in this asset underscores its strong investment potential, bolstered by a long-term lease with a premier hotelier in an exceptional location. Grosvenor’s wider expertise as a developer and asset manager makes them an ideal lending partner for this asset. At Firethorn, we have a strong track record of making strategic acquisitions that deliver attractive and secure returns, and Malmaison York is a valuable addition to our portfolio. We are delighted to collaborate with Grosvenor on this investment. This financing demonstrates Firethorn’s strength as a sponsor and our ability to secure favourable financing options, in today’s dynamic real estate market.”
Steph Ball, Investment Director at Grosvenor, said: “This transaction ticks a lot of boxes for us. We saw an opportunity to finance a high-quality asset, with a strong operator, and were able to adapt our strategy to do our first investment loan. This helps to diversify our existing ‘residential development’ portfolio, and we’re pleased to be working with a fantastic new partner with ambitious growth plans.”
Firethorn Trust was advised by JLL and Maples Teesdale. Grosvenor was advised by CBRE Lending and Freeths.
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