Cohort Capital has provided a £20m ($26.6m) bridging finance facility for the purchase of The Lancaster, a Grade II listed hotel overlooking Hyde Park in London, UK.

Details regarding the new owner have not been disclosed.

The 54-room property, which covers 41,371ft², was designed by a British architect in the mid-1800s, is set for redevelopment.

The new owner is currently considering various options for the site.

The options include converting the hotel into a 67-room boutique, developing 64 serviced apartments, or creating a private members club, stated Cohort Capital.

Cohort Capital founder Matt Thame said: “On the same day terms were signed, our team issued instructions to valuers and key stakeholders, enabling the loan to proceed swiftly and within the borrower’s required timeframe.

“There was strong collaboration throughout the underwriting process, with clear transparency from the sponsor around their vision for this landmark building.” 

The parties completed the transaction within three weeks.

The provision of funding supported the buyer’s timetable and assisted during the negotiation phase, which was critical to the completion of the deal, noted Cohort Capital.

The borrower said: “We required a reliable funding partner to support a competitively priced acquisition in a prime location, and Cohort Capital delivered. The transaction was secured and completed within three weeks, with clear communication and swift execution throughout.

“We were impressed by the team’s responsiveness and ability to move quickly on this asset; this was a seamless experience from start to finish.” 

Cohort Capital’s involvement in this deal has increased its total loan book to £740m.