Cohort Capital has provided a £20 million facility to fund the acquisition of The Lancaster, a Grade II listed hotel overlooking Hyde Park in prime central London.

The 54-room property, which spans more than 41,000 sq ft, was designed by a British architect in the mid-19th century and represents a significant redevelopment opportunity for its new owner.

Plans under consideration include transforming the site into a 67-bedroom boutique hotel, a 64-unit serviced apartment scheme, or a private members’ club.

The transaction was completed within three weeks, highlighting Cohort Capital’s growing momentum in the short-term real estate finance market. The lender said the speed and certainty of funding also helped the borrower negotiate on price.

The deal takes Cohort’s total loan book to £740 million.

Matt Thame, founder of Cohort Capital, said: “This transaction exemplifies Cohort Capital’s ability to navigate high-value assets in core London locations while delivering efficient and tailored funding solutions.

“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.”

A spokesperson for the borrower added: “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.”