ICBC provides loan to finance the acquisition of Tamburlaine Hotel in Cambridge

Project narrative

On November 15, 2019, the London Branch of the Industrial and Commercial Bank of China Limited (ICBC) extended a senior loan facility to Ability Cambridge Nine Ltd — an England and Wales-incorporated special purpose vehicle wholly-owned by Ability Cambridge Eight Ltd, an England and Wales-incorporated company with its immediate parent as England and Wales-incorporated Ability Cambridge Seven Limited, wholly-owned by England and Wales-incorporated Ability Cambridge Seven Holdings Limited, wholly owned by Cyprus-incorporated Ability (Hotels) Limited that is wholly-owned by A.P. The Ability Group Limited, which is turn is a Cyprus-incorporated company that is ultimately controlled by The Costas Panayiotou 1997 (No 2) Settlement Trust — to finance its acquisition of the property holding vehicle for the 55-room Tamburlaine Hotel in Cambridge, UK at an estimated cost of €64.4 million EUR (£55 million GBP). The borrowing terms of the loan are unknown. However, it is known that the loan was collateralized and the London Branch of ICBC served as the security agent (trustee). The acquisition from Irish owner-operator O’Callaghan Hotel was successfully completed in November 2019. Post-acquisition, the hotel was to be leased to the Dalata Group under a 30-year index-linked lease agreement, and operated under their Clayton brand. The buyers planned to reconfigure the hotel’s layout and add an additional 5 rooms.