Starwood Capital Group has originated a £1.8bn term loan as mandated lead arrangers to Blackstone Capital Partners and Blackstone Real Estate Partners for the acquisition of UK holiday company Bourne Leisure.
Starwood Capital will hold £720m split evenly between two of its investment vehicles, Starwood Real Estate Income Trust, Inc., a non-traded REIT managed by Starwood REIT Advisors, L.L.C., a subsidiary of Starwood Capital, and Starwood Property Trust, Inc.
Starwood Capital said this will be the first European investment, and the first debt investment into Starwood Real Estate Income Trust.
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Bourne Leisure is the largest provider of caravan holidays and holiday home ownership in the U.K., operating three well-known brands — Haven, Butlin’s and Warner Leisure Hotels.
“Starwood Capital has over 20 years of experience investing in Europe and we believe in the long-term growth opportunities in the UK. We expect to see a resurgence in the UK domestic leisure sector in the post-COVID lock down environment and are thrilled to participate in an investment that not only benefits our investors, but also supports the recovery of a COVID-impacted industry and the local economies that are tied to it,” said Lorcain Egan, Managing Director – Head of International Loan Originations, at Starwood Capital. “We are also pleased to provide this financing to Blackstone, who has a proven investment track record in the wider hospitality, travel and leisure sectors. This transaction is in line with our strategy of providing large loan financings across major real estate asset classes.”