Hotel developer secures stake in three London properties

Hotel developer Paddy McKillen has repaid his loans to IBRC and agreed a deal with Colony Capital that will secure his stake in three luxury London properties.

According to the Independent, McKillen paid back about €800 million in total, including both personal and corporate loans.

As part of the deal, he has reportedly agreed to a long-term financial partnership with Tom Barrack’s private international investment firm, Colony Capital, which will refinance loans secured in part by McKillen’s 36.2 percent stake in Coroin – the company that owns and manages Claridge’s, The Connaught (pictured) and The Berkeley hotels in London.

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The new financing relationship will assure a comprehensive recapitalization of McKillen’s balance sheet as well as an ongoing funding source for future capital deployment opportunities McKillen possesses and develops.