REL Finance completes £16.6m co-lend with OakNorth Bank for JMK Group.

January 13, 2025

Transaction overview

Green Street News covered REL Finance completing a £16.6m co-lend with OakNorth Bank to support JMK Group's acquisition of a London hotel asset.

The asset was identified for a hospitality-led repositioning strategy, with the sponsor intending to convert the building into a hotel, subject to planning.

The facility supported the acquisition stage of the business plan, giving the borrower a capital structure aligned with an asset that was expected to move from office use toward a hospitality outcome.

Asset strategy

The transaction focused on a well-located central London office asset where the borrower saw an opportunity to create hotel accommodation in a highly connected commercial district.

JMK Group brought relevant hotel ownership and operating experience, which was important to underwriting the business plan and execution pathway.

Change-of-use strategies can create attractive opportunities, but they also require careful lender analysis. The value case depends on the existing building, location, planning prospects, sponsor capability and a realistic route to refinance or sale once the plan has progressed.

Why a co-lend made sense

The co-lend structure brought together OakNorth Bank and REL Finance to support the sponsor's acquisition requirement. For the borrower, that meant a funding package with institutional capacity and a private-capital partner focused on practical execution.

REL Finance's involvement reflected its ability to work alongside banks where a transaction benefits from additional flexibility, real estate judgement and senior-level engagement with the sponsor.

Underwriting focus

REL Finance assessed the transaction around the borrower's hospitality expertise, the quality of the City of London location and the credibility of the proposed hotel conversion strategy.

For acquisition loans of this type, REL Finance looks closely at the repayment route, the sponsor's ability to progress planning and the downside resilience of the asset while the business plan is being advanced.

Partnership approach

The co-lend structure gave the sponsor access to relationship-led funding from REL Finance alongside OakNorth's lending platform.

For REL Finance, the deal reinforced its role in complex UK real estate transactions where borrower experience, asset quality and speed of execution all need to line up.

The transaction also showed the value of borrower relationships. A sponsor with a clear strategy and relevant operating experience can work with REL Finance to shape a facility around the real milestones of the opportunity.

Borrower takeaways

Sponsors pursuing acquisitions, bridge facilities or repositioning plans can use this transaction as an example of how REL Finance approaches asset-led lending. The conversation begins with the business plan, not a fixed product template.

Where the proposed use, leverage, timetable and exit strategy are coherent, REL Finance can support a range of UK property opportunities across senior, mezzanine and joint-venture style capital.

This REL Finance article provides an on-site summary of Green Street News coverage and added context for borrowers and advisers considering acquisition funding requirements.