Cindat finances hotel portfolio buy with $335M in loans

Chinese firm acquired majority stake in seven Manhattan hotels from Hersha Hospitality Trust

New York /
May.May 02, 2016 02:38 PM

Chinese investment firm Cindat Capital Management financed its $571 million purchase of a majority stake in seven Manhattan hotels with $335 million in loans from Natixis Real Estate Capital and Oaktree Capital Management.

The financing consists of a $285 million senior loan from a syndicate of domestic and international lenders led by Midtown-based Natixis, as well as a $50 million mezzanine loan from an affiliate of Los Angeles-based Oaktree.

Cindat, a U.S. subsidiary of China Cinda Asset Management, closed Monday on its previously announced acquisition of a 70 percent stake in the seven limited service hotels from Philadelphia-based Hersha Hospitality Trust.

The deal sees Hersha retain a 30 percent equity interest in the properties, as well as a $37 million preferred equity stake, at a 9 percent fixed coupon rate.

Cindat paid $526,000 per key for the properties, which hold a combined 1,087 rooms in Times Square, Chelsea, Herald Square and the Financial District operating under the Holiday Inn, Hampton Inn and Candlewood Suites brands.

“Demand for high-quality U.S. real estate assets is great from Chinese investors,” Cindat CEO Greg Peng said in a statement, adding that limited service hotels in Manhattan “offer steady cash flow with relatively low volatility, and hence, good risk-adjusted investment returns.”

Cindat recently acquired a $135 million equity stake in Bizzi & Partners Development’s planned luxury condominium tower at 565 Broome Street in Soho. The firm is also an investor in RFR Realty’s 100 East 53rd Street. — Rey Mashayekhi


Related Articles

arrow_forward_ios
Holiday Inn at 99 Washington Street (Google Maps, Getty)
Facing foreclosure, world’s tallest Holiday Inn files for bankruptcy
Facing foreclosure, world’s tallest Holiday Inn files for bankruptcy
Hyatt CEO Mark Hoplamazian and Dream Hotel Group founder Sant Singh Chatwal with 355 West 16th Street in Manhattan NYC (Hyatt, Dream Hotel)
Hyatt to acquire Dream Hotel Group for up to $300M
Hyatt to acquire Dream Hotel Group for up to $300M
Maefield Development's Mark Siffin and 20 Times Square (aka 701 Seventh Avenue) (Getty, Edition Hotels)
Massive loan on Maefield’s 20 Times Square in trouble
Massive loan on Maefield’s 20 Times Square in trouble
From left: 608 Fifth Avenue, 22 North Loop Road, 38 West 36th Street (608 Fifth, Weiss/Manfredi, Morphosis, and Handel Architects, Apartments, Getty)
Top 10 Manhattan loans: Big lending enters deep freeze
Top 10 Manhattan loans: Big lending enters deep freeze
Sonesta Hotels’ John Murray and The Shelburne Hotel (Illustration by Kevin Cifuentes for The Real Deal with Getty Images, Affinia, Sonesta)
TRD Pro: Biggest hotel sales of the past year
TRD Pro: Biggest hotel sales of the past year
(Photo Illustration by The Real Deal with Getty)
Pension funds pull back on commercial real estate
Pension funds pull back on commercial real estate
569 Lexington Avenue (Doubletree Metropolitan, Getty)
Lights out: Why more than 10,000 hotel rooms remain closed
Lights out: Why more than 10,000 hotel rooms remain closed
A photo illustration of Ignazio and Maggio Cipriani along with Mr. C Seaport at 33 Peck Slip (Getty, Mr. C Residences, Google Maps)
Korean firm in talks to buy Cipriani hotel in Seaport
Korean firm in talks to buy Cipriani hotel in Seaport
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...