JMK Group has secured a loan from OakNorth and REL Finance to acquire an office site in the City of London and convert it into a hotel.
The family run hospitality business plans to use the £16.6 million to fund the acquisition of a five-storey Grade II listed office block on St Clement Lane and convert it into a 185-key hotel, subject to receiving planning permission.
JMK’s hotel portfolio comprises seven properties across Dublin, Cork and London.
Why it matters
The focus on office to hotel conversions grew in 2024 and it seems the trend is set to continue due to challenges in new development. Hotel supply growth in EMEA is projected to slow significantly over the next five years, and this slowdown in new supply is prompting investors to focus on existing properties.
What they said
Zain Kajani, director of JMK Group said: “We are constantly looking towards the future, with this acquisition of the St. Clement Lane site a prime example of this, so we’re grateful to the OakNorth and REL Finance teams for their support in this transaction. Following the success of our initial transaction with OakNorth in August 2022, we knew they would once again be the right funding partner for us.”
Deepesh Thakrar, senior director of debt finance at OakNorth added: “JMK continues to be an incredibly strong family business, with ambitious plans for the future. This transaction represented an exciting opportunity to facilitate a new deal with an existing customer, that has built up an excellent portfolio and track record for creating highly successful hotels across the UK and Ireland. We look forward to continuing to support the group with its future growth, in particular with acquisitions of new assets to further strengthen its portfolio.”
Sumeer Bose, director at REL Finance added: “REL Finance is dedicated to supporting high-quality sponsors in repurposing commercial real estate in prime locations within the UK. JMK is a prominent group with exceptional in-house capabilities to transform properties such as these. We are pleased to strengthen our existing relationship with OakNorth, whom we consider a strategic partner in CRE loans.”