UK: Privately-owned hospitality business JMK Group has secured a £48 million loan from OakNorth Bank and REL Finance to transform a nine-storey office in the City of London into a 260-key hotel.
The funding will support the acquisition of a nine‑storey office building known as Peninsular House in the City of London, which JMK intends to reposition into a 260‑key hotel, subject to planning approval. The capital will also fund ongoing operational initiatives.
The site sits along Lower Thames Street, offering 360‑degree views across the River Thames towards London’s Tower Bridge and The Gherkin.
According to the Peninsular House consultation website, plans call for a “high-quality destination hotel with new active food and beverage uses” alongside “new guest rooms”. The building would be extended to support the proposal.
Zain Kajani, director of JMK Group, said: “We have experienced rapid business growth since our establishment in 2009 and now have an extensive portfolio which is constantly evolving. We are constantly looking towards the future; the acquisition of Peninsular House fits into our overall growth objective of growing in Central London and follows on from our acquisition of Clements Lane which is currently being developed.
“We are grateful to the OakNorth and REL Finance teams for their support in this transaction. Following the success of our last acquisition with Oak North and REL, we knew they would once again be the right funding partner for us,” he added.
Deepesh Thakrar, managing director of debt finance at OakNorth, said: “JMK Group has built a strong track record of acquiring and repositioning well-located assets across London, and this latest transaction is a natural continuation of that strategy. Having supported the business previously, we’re pleased to deepen our relationship and work alongside REL Finance to deliver a flexible, tailored financing solution.”
Sumeer Bose, director at REL Finance, added:“At REL Finance, we focus on backing experienced sponsors executing high-conviction strategies in prime real estate. This marks our second transaction with JMK and their ability to consistently identify, acquire, and reposition assets in core locations makes them a standout operator in the market.”
JMK has a further six hotels under development which will bring the group’s portfolio to more than 2000 beds in the next two years.
Highlights:
- JMK Group secured a £48 million loan from OakNorth Bank and REL Finance to fund a City of London hotel redevelopment.
- The financing supports acquisition and conversion of Peninsular House, a nine-storey office on Lower Thames Street, into a 260-key hotel, subject to planning approval.
- Overlooking the River Thames, the redevelopment site offers views towards Tower Bridge and The Gherkin.
- Following this transaction, JMK Group continues expanding its London portfolio with six hotels under development, targeting more than 2,000 beds across its hospitality pipeline within two years.
