Regal London has secured a £29.5m loan from Secure Trust Bank Real Estate Finance (STB REF), to develop a 14 storey 156-bed aparthotel and café at 73-77 Commercial Road, Whitechapel.
Regal London received planning permission for the scheme in 2019 and has already pre-let the space on a 30-year lease to Staycity for its premium brand, 'Wilde'. Work on site has started and the completion of the building is expected in 2021.
Marc Eden, Investment and Legal Director at Regal London, said: "Staycity's aparthotel is a fantastic addition to our mixed-use portfolio and demonstrates our ability to develop across all asset classes. Secure Trust Bank believed in our vision for this site and we are delighted to be partnering with such a supportive lender."
In addition to kick-starting the development, the funds from STB REF will enable Regal London to retain the property within their own investment portfolio.
Michael Chakli, Relationship Director at STB REF, said: "This is our second project with Regal and it's great to be able to assist the company as it embarks on a new venture in the leisure sector."
STB's national real estate team provides lending facilities of £1m-45m to residential and commercial property developers and investors, from SME housebuilders to UK-based funds.