OakNorth, the digital bank for entrepreneurs, by entrepreneurs and structured real estate lender, REL Finance, have completed a £16.6m co-loan to JMK Group, a leading family-run hospitality business.

JMK’s story began when an ambitious entrepreneur, John Kajani, made a bold decision to move from textiles to the hospitality industry. With a strong work ethic and an eagerness to succeed, he opened a small boutique hotel in Kensington in 2009, unaware it would later grow into an extensive portfolio of hotels, properties and coffee houses across the UK and Ireland, known as the ‘JMK Group’.

The £16.6m co-loan from OakNorth and REL Finance will be used to acquire a five-storey Grade II listed office block and convert it into a new 185-key hotel, subject to receiving planning permission. The site, strategically located in the heart of the City of London along St. Clement Lane, is an area renowned for its vibrant business community and historical significance. This acquisition aligns with JMK Group’s vision to enhance the commercial landscape of London by transforming outdated office spaces into a hotel with state-of-the-art facilities that cater to modern business and recreational needs.  

Zain Kajani, Director of JMK Group, said: “At JMK Group, we pride ourselves on being a strong privately-owned company that puts people at the heart of everything we do. We’ve experienced rapid business growth since our establishment in 2009 and now have an extensive portfolio which is constantly evolving. We are constantly looking towards the future, with this acquisition of the St. Clement Lane site a prime example of this, so we’re grateful to the OakNorth and REL Finance teams for their support in this transaction. Following the success of our initial transaction with OakNorth in August 2022, we knew they would once again be the right funding partner for us.”

Deepesh Thakrar, Senior Director of Debt Finance at OakNorth, continued: “JMK continues to be an incredibly strong family business, with ambitious plans for the future. This transaction represented an exciting opportunity to facilitate a new deal with an existing customer, that has built up an excellent portfolio and track record for creating highly successful hotels, across the UK and Ireland. We look forward to continuing to support the Group with its future growth, in particular with acquisitions of new assets to further strengthen its portfolio.”

Sumeer Bose, Director at REL Finance, added: “REL Finance is dedicated to supporting high-quality sponsors in repurposing commercial real estate in prime locations within the UK. JMK is a prominent group with exceptional in-house capabilities to transform properties such as these. We are pleased to strengthen our existing relationship with OakNorth Bank, whom we consider a strategic partner in CRE loans.”