January 5, 2020
The Four Seasons Milan is one of Europe’s most beautiful hotels and is comprised of 117 luxury rooms, with 51 suites, two five-star restaurants, a high-end spa and a prime high-street retail store in the heart of the Montenapoleone district of Milan. This transaction, which was in the works for over six months, continues to demonstrate Carlton’s unique ability to access capital and close transactions even though liquidity in Europe is scarce.
Moreover, while the Four Seasons is an excellent asset, the loan encumbering the property was overleveraged. Notwithstanding, Carlton was able to access a U.K. balance sheet lender who funded the transaction. In fact, Carlton’s structure was highly-beneficial to our client, in that it allowed them to buy their loan back at a sizable discount and maintain ownership without bringing in any other equity investors.
Campbell added: “This transaction clearly highlights Carlton’s ability to access non-conventional capital sources to fund important client transactions, whether they be in Europe or on the North Pole…We specialize in understanding the capital objective and then customizing a targeted, strategic approach to access the necessary capital on the best possible terms for our clients.”
“This transaction is a precursor to other discounted loan payoffs which will inevitably occur, now that financial institutions with European exposure look to monetize underwater loans,” says Michael J. Campbell, CEO of the Carlton Group, who arranged the transaction between The Four Seasons property owner, the London money manager who provided the capital and the financial institution who sold the loan.
The closing of the Four Seasons Milan comes on the heels of an absolutely torrid month for Carlton, as we have closed approximately $2 billion of large, high profile transactions within the last 30 days.
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