Brown Rudnick Advises Queensgate Investments on $800M Global Refinancing Involving Europe and US
Brown Rudnick assisted Queensgate with the arrangement and structuring of the global financing, as well as the legal execution.
In one of the largest real estate financings this year, international law firm Brown Rudnick advised London-based private equity firm Queensgate Investments (Queensgate) on a nearly $800 million global refinancing of Generator Hostels (“Generator”), a lifestyle hospitality platform which owns, operates and develops assets across Europe and North America.
This landmark transaction further cements the Firm’s position as a go-to powerhouse for real estate financing deals, which consistently exceed £1 billion in value each year, and as a trusted advisor that delivers successful outcomes for a wide range of corporate and investor clients.
The transaction, which involved 13 jurisdictions worldwide, featured a combination of European debt facilities (denominated in euros, pounds and Danish krones) and private bond issuances of approximately €450 million ($480 million) for Generator’s European arm, which was backed by Ares Management, and U.S. debt facilities of circa. €312 million ($331 million) for Generator’s U.S. arm, which was backed by Generator’s existing lenders Waterfall Asset Management and Värde Partners.
Generator’s strong performance post-Covid has enabled Queensgate to refinance Generator’s global debt with direct lenders in a challenging financial market.
Queensgate acquired the European arm of Generator in March 2017, with traditional senior financing from lenders including Société Générale, London Branch and HSBC Bank plc, as well as mezzanine financing from Apollo Global Management; Queensgate later made a series of well-timed acquisitions of U.S. assets throughout 2018 and 2019, including acquiring Freehand Hotels in October 2019, owner of the Paramount Hotel in New York, all of which Brown Rudnick advised on.
Jason Kow, founder and CEO of Queensgate, said: “This is one of the largest and most innovative real estate financings that the market has seen this year, involving multiple outgoing lenders across 13 jurisdictions globally. We are hugely grateful to our longstanding trusted advisor Brown Rudnick for its commitment to getting this important and sizeable transaction over the line. Tuvi and his team’s understanding of our business and the market is second to none and their laser sharp focus on execution, experience and responsiveness makes them our partner of choice.”
Tuvi Keinan, partner and practice group leader of Brown Rudnick’s Special Situations, Credit & Trading Practice Group, said: “We are thrilled to have advised our longstanding client, Queensgate, on this complex refinancing on both sides of the Atlantic. Over the last few years, we have seen many global banks pulling back from sizable and more complex real estate finance transactions as a result of economic and market uncertainty, allowing direct lenders such as Ares, Waterfall and Värde to provide debt on a senior basis. This deal is a further example of this trend and marks a positive outcome for all parties, as Generator continues to go from strength to strength.”
Keinan led the Brown Rudnick deal team, which included partner Eleni Zodiates, counsel Tristan Dollie, and associates Jonty Browne and Thea Dodwell in London as well as finance partner Jonathan Nye in Boston. In addition, from the corporate practice in London, partner Tom Braiden, and associates Toby Plowman, Stephen Wallace and Jennifer Hernandez also provided support, along with tax partner Tracy Fisher.
Queensgate advises and manages around £3 billion worth of assets through the suite of Queensgate Investments Funds. Queensgate differentiates itself by its flexible, nimble and non-institutional approach to producing superior risk adjusted returns.
Generator is Europe’s fastest-growing boutique accommodation brand with hostels and affordable boutique hotels located in the most central locations across Europe and North America, including Dublin, London, Copenhagen, Hamburg, Berlin, Venice, Barcelona, Paris, Amsterdam, Stockholm, Rome, Madrid, Miami and Washington, D.C.
Ares Management is a leading global alternative investment manager established in 1997. Launched in January of 2022, The Ares European Real Estate Debt team has originated and closed on over £1.1 billion of real estate loans across Europe.
Founded in 2005, Waterfall Asset Management is a global alternative investment manager with approximately $12.5 billion in assets under management. Waterfall is headquartered in New York, with additional offices in London, Dublin, and Hong Kong.
Värde Partners is a leading global alternative investment firm that manages approximately $13 billion in assets, with teams in North America, Europe, and Asia Pacific.