Raiffeisen Bank International AG (RBI) has provided the Fattal Hotel Group with syndicated real estate financing amounting to EUR 96 million. The loan facility benefits several companies within the Leonardo Group, which is part of the international hotel group. The transaction marks a significant financing step for Germany as a hotel location.
The capital provided serves a two-fold purpose. Firstly, the loan is being used to refinance existing liabilities of the borrower entities. Secondly, through the agreement, the syndicate is providing liquidity to implement upcoming capital expenditure measures across the group's existing assets in a targeted manner.
Investments in eleven German hotel locations
The financing measure relates to a nationwide portfolio comprising eleven hotels in total. By securing these financial resources, the operating company obtains the necessary scope to press ahead with refurbishments and targeted measures across the portfolio, ensuring the sustainable development of the standing assets.
- —Financing volume: EUR 96 million as a syndicated loan
- —Lender: Raiffeisen Bank International AG (RBI)
- —Borrower: Companies of the Fattal Hotel Group / Leonardo Group
- —Scope: Portfolio of eleven hotels in Germany
Complex cross-border legal advice
On the legal side, law firm Luther advised Raiffeisen Bank International AG on all financing law matters concerning the transaction. In addition to drafting the agreements, the mandate included conducting in-depth legal due diligence on the hotel properties bundled within the portfolio.
Due to the international structure of the borrower group, the transaction involved considerable cross-border complexity. Alongside providing counsel under German law, Luther's advisory team also managed and coordinated legal advisers across five other foreign jurisdictions. Advising on such transactions is one of the established focus areas of the firm's Banking & Finance practice group.
