Extended stay operator Edyn agrees £195m debt facility with Blackstone and KSL

Cove, The Hague
Cove, The Hague. (Edyn)

Extended stay operator Edyn has secured a £195 million multi-asset debt facility with Blackstone Real Estate Debt Strategies in partnership with an affiliate of KSL Capital Partners through its European Capital Solutions platform.

The company operates lifestyle aparthotel brand Locke, and newly launched serviced apartment brand, Cove.
The facility contributes to the funding arrangements on five projects comprising 859 units across The Hague (Cove – Centrum), London (Bermonds Locke, Buckle Street Studios, Cove – Landmark Pinnacle) and Cambridge (Turing Locke/Hyatt Centric).

The arrangement underscores Edyn’s expanding presence across Europe, which includes seven new Locke openings this year in the UK, Ireland, and Germany; plus, two new Cove openings in Canary Wharf and the Liverpool ONE development.

Edyn recently announced it had acquired a project in The Hague which will be the first scheme to operate under its newly launched Cove brand in mainland Europe. Formerly a 118-key hotel, the asset will be converted to 121 serviced apartments, and is expected to open in March 2022.

“We are pleased to partner with Blackstone and KSL whose experience, sector knowledge and capability to transact across multiple jurisdictions made them the ideal funding partner for this transaction,” Merzak Kaddour, investment director at Edyn, said.

“The pandemic reaffirmed that Edyn’s products and strategy are meeting the growing demand for high-quality aparthotels and extended stay facilities. We are excited to push forward with our European growth and look forward to a prolonged working relationship with two of the most highly respected and well-established players in the sector.”

Steve Plavin, senior managing director, Blackstone Real Estate Debt Strategies, commented: “We are delighted to support Edyn as they continue to successfully expand across Europe. Providing financing to Edyn, a top sponsor in the extended stay and hospitality sector, with a great lending partner in KSL, is a fantastic business for our debt platform.”

Hal Shaw, partner and head of European Capital Solutions at KSL, added: “KSL ECS is pleased to partner with Edyn and Blackstone to help facilitate the next phase of Edyn’s expansion as the Company continues to build upon its track record of leadership and innovation within extended stay hospitality.”

JLL acted on behalf of Edyn as debt advisor.