JLL advises Värde Partners on €337 million bond financing from Blackstone for European hotel group The Dedica Anthology

Transaction represents one of the largest bond financings by an alternative debt provider ever in the Italian real estate market and the largest hotels debt advisory mandate to date for JLL

January 10, 2019

JLL has advised on a €337 million bond financing for The Dedica Anthology hotel group, a European portfolio of nine luxury hotels located in Italy, France, Hungary and the Czech Republic, owned by global alternative investment firm Värde Partners. The debt provider is Blackstone Real Estate Debt Strategies and the transaction represents one of the largest bond issuances by an alternative debt provider in the Italian real estate market.

The bonds will refinance legacy loans and provide additional capital for The Dedica Anthology to invest significantly in its estate.

Chris Gow, Head of Debt Advisory, EMEA, in JLL's Hotels and Hospitality Group, commented: "We are delighted to have been able to support our client in this highly complex deal – the largest deal ever completed by our hotels debt advisory team – and are pleased with the outcome given the scale, multi-jurisdictional nature, and current volatility in Italian debt capital markets. This is a landmark deal and Dedica Anthology now has a supportive, long-term lender, as it invests in its portfolio to unlock significant revenue and value growth for the business."

Michael Zerda, Managing Director and Head of Europe for Blackstone Real Estate Debt Strategies, added: "We are thrilled to have Värde as a valued new client and we're excited to be a part of their repositioning of this iconic portfolio of hotels.  We regularly provide speed and certainty for owners of large and complex multi-jurisdictional portfolios across the globe, and are proud to expand our whole loan lending business into Southern Europe in such a meaningful way."

Stephen Alden, CEO of The Dedica Anthology, commented: "We are delighted to have completed this complex refinancing. Our own team, the board, our advisors and the lending group have worked hard in collaboration to achieve this excellent result. Our focus is now fully on building The Dedica Anthology brand, carrying out strategic renovation and restoration work on our distinctive properties, strengthening our team and growing our business."

Alessandro Grassivaro, CFO of The Dedica Anthology, added, "Dedica now has a firm financial foundation from which to invest in our real estate and build a successful brand for the future, both as owner as well as operator."

Francisco Milone, Partner and Head of European Real Estate at Värde Partners, commented, "Since completing the purchase of Gruppo Boscolo in April 2017 we have put in place a new management team and rebranded the hotels to The Dedica Anthology throughout Italy, France, Hungary and the Czech Republic. Now with that strong management in place, a restructured balance sheet and a supportive and expert lender in Blackstone, the company is well-positioned for growth."