The Hongkong and Shanghai Hotels Signs GBP650 million (HK$7 billion) Five-Year Term Loan Facility
06 Mar 2018
Hong Kong, 6 March 2018
The Hongkong and Shanghai Hotels, Limited (HSH) announced that its wholly-owned subsidiary, HSH Financial Services Limited, has signed a GBP650 million (HK$7.02 billion) Five-Year Term Loan Facility with a group of five international banks. The facility, which matures in 2023, is guaranteed by HSH and bears interest at LIBOR plus a fixed margin. The drawdown of the facility will be staggered to fund progress payments for the construction costs of The Peninsula London project.
The Lead Arrangers include Bank of China (Hong Kong) Limited, Hang Seng Bank Limited, Mizuho Bank, Ltd, Hong Kong Branch, Oversea-Chinese Banking Corporation Limited and The Hongkong and Shanghai Banking Corporation Limited (HSBC). Each bank will provide GBP130 million (HK$1.4 billion).
Commenting on the financing, Mr. Clement Kwok, Managing Director and Chief Executive Officer of HSH said: “This is the largest financing that HSH has ever arranged, and we are pleased that it has met with a strong response from the bank market. We believe this response highlights overall market confidence in HSH and is a reflection of the magnificent property which we are developing in London, comprising The Peninsula London hotel and The Peninsula Residences London. We are pleased to welcome new lenders into our bank group.”
Speaking about The Peninsula London project, Mr Kwok added: “London is one of the world’s most dynamic and vibrant cities, with a unique energy and culture, and we believe it has a most exciting future. The Peninsula London hotel and residences will set new standards in luxury and service and we believe they will be the finest in the London market when completed.”
The project site for The Peninsula London is in a spectacular location overlooking Hyde Park Corner and the Wellington Arch and will comprise a 190-room hotel and 24-28 luxury residential apartments, with opening currently scheduled for 2021.
The Peninsula London hotel has been designed by UK-based Hopkins Architects Partnership, with the interiors designed by Peter Marino Architect. Food and beverage outlets are being designed by Archer Humphryes and CAP Atelier, with specialist lighting designed by Speirs + Major. Engineering services are provided by WSP and Cundall. The Development and Project Manager is Prime Development, construction management is being handled by Sir Robert McAlpine and cost management by Arcadis. Demolition by Keltbray is complete and piling by Cementation Skanska is underway.
About The Hong Kong and Shanghai Hotels
Incorporated in 1866 and listed on The Stock Exchange of Hong Kong (00045), HSH is the holding company of a Group which is engaged in the ownership, development and management of prestigious hotel, commercial and residential properties in key locations in Asia, the United States and Europe, as well as the provision of transport, club management and other services. The Peninsula Hotels portfolio comprises The Peninsula Hong Kong, The Peninsula Shanghai, The Peninsula Beijing, The Peninsula Tokyo, The Peninsula New York, The Peninsula Chicago, The Peninsula Beverly Hills, The Peninsula Paris, The Peninsula Bangkok, and The Peninsula Manila. Projects under development include The Peninsula London, The Peninsula Yangon and The Peninsula Istanbul. The property portfolio of the Group includes The Repulse Bay Complex, The Peak Tower and St. John’s Building in Hong Kong; The Landmark in Ho Chi Minh City, Vietnam; 1-5 Grosvenor Place in London, UK, and 21 avenue Kléber in Paris, France. The clubs and services portfolio of the Group includes The Peak Tram in Hong Kong; Thai Country Club in Bangkok, Thailand; Quail Lodge & Golf Club in Carmel, California; Peninsula Clubs and Consultancy Services, Peninsula Merchandising, and Tai Pan Laundry in Hong Kong.