Barings, one of the world’s largest property investment managers, has strengthened its involvement in the Irish market with an agreement to act as lead lender on a €70.1 million facility (62.5% value loan) to the JMK Group secured against the Dublin Airport Hotel Holiday Inn.
The 421-room hotel, which opened in 2021, is being used temporarily as a shelter for asylum seekers. The hotel (not to be confused with the Tifco Group’s Holiday Inn Express at Dublin Airport) was originally scheduled to start operations in the first quarter of 2020, but its opening has been delayed by the pandemic, which has disrupted travel sectors and the hotel industry.
The investment loan refinances the existing development facility provided by Fairfield Real Estate Finance (FREF) to finance the construction of the hotel. Barings and FREF, which provided a senior loan and a junior loan respectively, agreed to the facility for a term of four years.
The British JMK group, founded by Pakistani-Irish businessman Jalaluddin Kajani, also known as John Kajani, owns and operates three other hotels in Ireland: the Holiday Inn Express on O’Connell Street. the Hampton by Hilton Dublin City Center and the Waterford Marina Hotel.
Commenting on Fairfield and Barings’ decision to refinance the Holiday Inn Dublin Airport hotel, Mr Kajani said: “We thank Fairfield for their confidence in JMK and the Holiday Inn Dublin Airport project by supporting us through the development loan. We are happy that they have remained under the investment loan. We are delighted to start a new beginning with Barings. We look forward to making this hotel one of the best in Ireland.
Eager to expand
Chris Bates, Managing Director and Head of European Real Estate Debt Origination at Barings, said: “With our real estate debt business in Europe continuing to grow, the addition of this loan secured by such a well-located asset in Ireland is the latest addition to our portfolio.As our loan portfolio grows, we look forward to identifying new investment opportunities.
Chris Davison, Head of Deal Origination at FREF, said: “We are delighted to complete this loan with Barings and continue to support the growth of the JMK Group. Having supported the group throughout the development phase, it is great to see this hotel open and commercial, with the potential to become one of the best hotels in Ireland.
The granting of the loan to JMK comes just four months after Barings agreed to two loans totaling €225 million to KKR and Palm Capital to finance their acquisition of industrial and logistics assets in Dublin and the Greater Dublin area. These loans marked Barings’ debut as a lender in the Irish logistics market.
As a first step, Barings provided a five-year, €188.5 million floating rate senior secured loan to support KKR and Palm Capital’s €195 million purchase of the Core Portfolio, a set of 73 industrial and logistics assets spread across Dublin and the Greater Dublin Area. The portfolio is 97% leased to a mix of occupants, including prime tenants. Its most significant asset is the 51-hectare (125-acre) Naas Enterprise Park in Kildare.
The second loan facility comprised a €36.7 million floating rate first mortgage to finance the acquisition of a portfolio of six last mile light industrial properties in Dublin. With an initial term of three years, plus two one-year extension options, the debt is secured by a portfolio comprising a total area of 32,000 m² (345,000 sq ft), which is 95% occupied with a term unmatured weighted average lease term. 7.5 years old.