Pullman London St Pancras refinancing sealed with £121m five-year facility by ADIB and Emirates NBD
ADIB and Emirates NBD complete £121m five-year refinancing for Pullman London St Pancras, strengthening their UK real estate lending and partnership in London
The Pullman London St Pancras refinancing was finalised today as Abu Dhabi Islamic Bank (ADIB) and Emirates NBD agreed a £121 million, five-year facility to refinance the 312-room hotel in central London. The transaction, arranged through ADIB’s United Kingdom arm for developer Union Property, marks a deepening of the banks’ partnership and reinforces their focus on high-quality UK real estate assets. The deal is structured as a joint financing equally shared by both lenders and represents their second collaborative mortgage facility.
Deal completion and immediate terms
The financing totals £121 million and carries a five-year tenor, providing medium-term capital for Union Property’s asset management and refinancing needs. The facility was arranged and executed through ADIB’s UK operations with Emirates NBD participating as a co-lender on equal terms. Market sources said the financing is intended as a straightforward refinance rather than a development loan, preserving the hotel’s established operating profile.
Transaction structure and lender roles
The two banks split the commitment evenly, reflecting a continuing strategic relationship between ADIB and Emirates NBD in the UK market. ADIB acted as the lead arranger through its UK subsidiary while Emirates NBD provided a matched participatory tranche alongside its institutional banking team. Officials described the structure as a bilateral-style club facility that balances lender exposure while enabling Union Property to refinance with a streamlined covenant package.
Hotel profile and operator agreement
Pullman London St Pancras is a four-star hotel operated under the Pullman brand within the Accor group and comprises 312 guest rooms. The asset benefits from a long-term management and lease arrangement with Accor that extends beyond two decades, underpinning stable operational cash flows. Its central St Pancras location supports strong leisure and corporate demand, which lenders cited as a key factor in underwriting the transaction.
Comments from the developer and lenders
Union Property’s chief executive, Raj Sehgal, said the refinancing would strengthen the developer’s banking relationships and support its ongoing UK commitments. He described the facility as a significant follow-up to the company’s earlier financings and welcomed the continued engagement of both banks. ADIB’s UK chief executive, Paul Maysfield, noted the deal as a successful repeat collaboration with Emirates NBD and Union Property, underscoring ADIB’s ambitions in the UK corporate and real estate lending market.
Emirates NBD’s view and real estate focus
Rashid Amin, head of Emirates NBD’s UK operations, said the bank was pleased to lead the transaction on behalf of Union Property in partnership with ADIB. He framed the deal as part of Emirates NBD’s wider strategy to target high-quality London real estate assets backed by experienced operators. Carlo Di Fous, who leads corporate and institutional banking at Emirates NBD UK, added that the bank’s real estate team continues to prioritise assets with proven performance records and prime locations.
Market context and significance for UK lending
This refinancing arrives amid steady investor appetite for London hotels that combine strong location and long-term operator partnerships, even as macroeconomic and tourism patterns evolve. For ADIB and Emirates NBD, the transaction enhances their footprints in the UK lending market and signals greater willingness among Gulf-based banks to co-invest on sizeable hospitality assets. Observers noted the deal also demonstrates how matched bilateral structures can diversify credit exposure while supporting borrower liquidity needs.
The Pullman London St Pancras refinancing is expected to complete administrative steps in the coming weeks with funds to be drawn under the new facility according to agreed disbursement and covenant schedules. The transaction reaffirms the role of cross-border Gulf lenders in financing core London real estate and may prompt similar joint approaches on comparable assets.
