Aareal Bank completes €566m refinancing for The Social Hub’s European portfolio

Aareal Bank has provided a €566 million refinancing loan to The Social Hub, a hybrid hospitality concept offering co-working, events, hotel, extended-stay rooms and student accommodation.

The refinancing of the cross-border portfolio, which comprises 7,000 rooms in properties across the Netherlands, Spain, France and the UK, was arranged in collaboration with two other lenders including Rabobank. The Social Hub currently has 3,000 rooms in its pipeline.

Aareal Bank acted as the arranger, agent, and security agent of the senior loan, which is classified by Aareal as a green loan under its own green finance framework.

Lenders’ legal counsel, led by Van Doorne in the Netherlands, comprised White & Case in Spain, Pinsent Masons in Scotland and De Pardieu Brocas Maffei in France. The Social Hub was advised on by Clifford Chance. The valuation was carried out by CBRE.

Why it matters

The Social Hub’s successful refinancing further indicates the continued interest in the hotel/hospitality sector shown by lenders, especially in companies which demonstrate an ability to evolve with today’s hotel guest, a guest who has different demands post-pandemic.

What they said

Michelle Weiss, head of hotel properties at Aareal Bank said: We are delighted to establish this relationship with such a unique hospitality brand and operator as TSH. The distinction between traditional hotel services, co-working, co-living, student accommodation and retail is becoming blurred. TSH offers just the right blend of liveliness, style, and function in a concept that has been proven to be both highly resilient and attractive.”

Charlie MacGregor founder and CEO of The Social Hub said: “We were delighted to be able to partner up with experienced lenders like Aareal Bank and Rabobank, who understand the demands of our business and demonstrate strong operational and local expertise. The successful refinancing of our portfolio will allow us to further invest in the growth and quality of our platform across Europe, with upcoming hotel openings in San Sebastian, Glasgow, Rome, Florence and Porto in the coming eighteen months.”