With Deal on Central London’s Belgravia Gate, 15 Month-Old Firm Has Arranged Nine-Figure Deals on Two Continents
Lotus Capital Partners, LLC, an independent real estate investment bank, announced today that it has arranged and closed a $237 million (£170 million) loan for Central London’s Belgravia Gate, a row of townhouses converted into 12 ultra-luxury apartments in the city’s famed Golden Postcode. Belgravia Gate is among the most expensive condominium properties in the world when measured by average apartment unit value. The loan amounts to $27 million for each of the nine units that are part of the collateral.
“In arranging capital for this condo-inventory deal, Lotus demonstrated its capacity to solve meaningful challenges for sponsors seeking development financing,” said Faisal Ashraf, Lotus’ founder and chief executive.
The property, which features the most luxurious amenities in the European market, focuses on attracting buyers looking to marry contemporary elegance with a location rich in history. The meticulous restoration of the townhomes’ white, Portland stone façade, originally built in 1867, will preserve aesthetic continuity with the area’s Victorian architecture, a Golden Postcode hallmark.
This financing marks the emergence of Lotus on the global stage as the firm has now arranged capital for landmark deals in both the U.S. and Europe. It is the second nine figure deal closed by Lotus, which started business two years ago, bringing the company’s total dollar amount closed and secured to over $1.5 billion. Last winter, Lotus arranged a $400 million capital stack for Via Mizner, a 2-million-square-foot, mixed-use project in Boca Raton, Florida. That deal represented Florida’s largest debt financing of 2017.
In 2018, Lotus expects to close between $1.5 and $2.0 billion, cementing the firm’s status among the top players in the global debt placement industry for commercial real estate assets. The firm can partially attribute its success to arranging and structuring capital in ways that reflect clients’ complex needs, while navigating the secular challenges that are unique to each project. In the case of Belgravia, these factors included Brexit and the United Kingdom’s recent general election.
Brexit created a widespread sense of economic uncertainty, while the election became a de-facto referendum on the inflow of wealthy foreigners’ capital into the U.K. Despite these obstacles and no pre-sales for the asset when the financing was secured, Lotus demonstrated the value of its global capital relationships and mastery in its ability to position lending opportunities to key capital sources.
“The successful closing of this deal underscores our real estate financing expertise and market credibility among capital sources, both of which are required to arrange and execute on complex deals such as this,” Ashraf said.
Proceeds from the financing will pay off an existing construction loan and cover carrying costs through the property’s sell-out.
About Lotus Capital Partners, LLC
Based in New York City, Lotus is a boutique real estate investment banking firm that focuses on two distinct businesses: Debt Placement and Loan Sales and Distribution.
Through the Debt Placement business, Lotus serves owners and developers by raising capital for their commercial real estate transactions. Through its Loan Sales and Distribution business, Lotus serves lenders and investors looking to monetize their positions in A-notes, mezzanine debt and whole loans.
The team is comprised of lending and placement veterans who have closed more than $40 billion in structured real estate debt transactions.
