PPHE Hotel Group announced it has entered into a syndicated facility agreement arranged by Bank Hapoalim B.M. for a facility of up to £180 million (the "Facility") to fund the development of art'otel london hoxton (the "Hotel") on a site located by Old Street, Rivington Street, Great Eastern Street and Bath Place, London EC1 (the "Site"). The initial maturity date of the Facility is April 2024 although there are provisions, subject to certain conditions, to extend the Facility by two periods of three years each. The Facility bears a floating interest rate, reflecting an interest rate of 4.191% as at the date of this announcement, reducing following two consecutive quarters after practical completion of the Hotel. The Facility contains customary debt service cover and loan to value financial covenants, applicable following practical completion of the Hotel, which must be complied with, subject to an ability to cure in certain circumstances through the injection of equity or prepayment (to the extent necessary) of the Facility. The Facility will be secured by, among other things; mortgages over the ownership interests in the Site and security over the shares in certain group companies that own such interests in the Site. The lenders under the Facility benefit from completion and cost overrun guarantees provided by PPHE. Drawdown under the Facility is subject to certain conditions precedent being fulfilled. The total aggregate project costs remaining for completion of the Hotel are approximately £200 million. The Group has contributed a material part of its equity commitment for this project as required under the Facility and therefore does not expect a material outflow of cash in respect of this project until July 2022. The Facility entitles the Group to temporarily unlock some of its invested equity of up to £43 million, at the Group's election, in which case the unlocked equity will then be reinvested in line with the progress of the project. Following the approval by the independent shareholders of the Related Party Transaction in relation to the main works for the design and build of the new art'otel london hoxton as announced on 17 March 2020, and in conjunction with the signing of the Facility, the Group confirms that it has entered into a building contract with Gear Construction UK Limited ("Gear") for the design and construction of the Hotel on a "turn-key" basis. This agreement is conditional on the receipt by Gear of written notice from the Company, which is expected to be given subject to fulfilment of the conditions precedent for drawdown under the Facility and the period for completion of the Hotel under the building contract has been extended to 44 months from the date of such notice.