Carlton Chairman, Howard L. Michaels has announced the closing of a 250 million euro ($321.3 million) recapitalization and discounted loan payoff at the Four Seasons Hotel in Milan, Italy. The Four Seasons Milan is comprised of 114 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.
Carlton Chairman, Howard L. Michaels has announced the closing of a €250 million recapitalization and discounted loan payoff at the Four Seasons Hotel in Milan, Italy.
The Four Seasons Milan is one of Europe’s most beautiful hotels and is comprised of 114 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 to close transactions even though liquidity in Europe is scarce.
This was a difficult transaction to fund due to the dearth of capital and the volatility which continues to plague the European real estate and financial markets.
Notwithstanding, Carlton was able to access a balance sheet investor who funded the transaction that enabled our client to buy their loan back at a discount and maintain ownership of the property without bringing in any other equity investors.
Michaels 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 Howard L. Michaels 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, with who has closed approximately $2 billion of large and high profile transactions within the last 30 days.
A selection of other recently completed and committed transactions by Carlton are as follows.
› £36 Million Residential Land Refinancing in London – We are currently in contract to close on the £36 million refinancing of a prime residential land site in the heart of London, United Kingdom.
› $700 Million Portfolio Sale with a Major Sovereign Wealth Investor – This portfolio is in hard contract with a major sovereign wealth investor for the acquisition of a primarily hospitality and office portfolio throughout the United States.
› €130 Million Croatian Hotel & Apartment Portfolio Recapitalization – We arranged capital from a large European Investment Bank to facilitate the recapitalization and discounted loan payoff on a portfolio of high-end hotel and apartment assets located on the Adriatic Coast of Croatia.
› $400 Million of Construction Financing at 432 Park Avenue – We recently raised $400 million of construction financing from a not commonly known European lender to provide all the capital to develop the tallest residential tower in the United States at 432 Park Avenue in Manhattan.
› €250 Million of Two Five Star Iberian Hotels – We are in advanced stages of finalizing the recapitalization of a premier hotel in the heart of Barcelona as well as arranging the acquisition capital for a top tier hotel in Portugal.
About the Carlton Group
The Carlton Group is an international real estate investment banking firm with offices throughout the United States London and Athens. Founded in 1991, Carlton has consummated in excess of $90 billion in transactions.
Carlton is one of the world’s most successful intermediaries in providing equity and debt capital solutions, as well as providing sophisticated investment sale services. The firm also specializes in providing commercial loan restructuring and recapitalization services. Carlton’s expertise includes arranging passive promotable equity for individual real estate transactions and raising entity level equity capital for institutional sponsors.
Carlton also executes an aggressive international advisory platform, which is currently executing well over one billion dollars of equity, debt and investment sale advisory business throughout Europe and Eurasia.