NEW YORK, Nov. 14, 2011 /PRNewswire via COMTEX/ -- Investcorp's US-based real estate arm announced today that it has purchased mezzanine debt backed by the Paramount Hotel in New York City's Times Square.

Investcorp purchased two existing mezzanine loans with a principal balance of $40 million from Fillmore Capital Partners, who was an existing lender for the Paramount at the time of RFR's purchase of the hotel in October 2011. The transaction allows Investcorp to participate in the hotel investment through the purchase of the two performing loans. This is in line with Investcorp's business strategy to be an active player in the areas of both debt and equity investments in US commercial real estate.

The Paramount is a 20-story hotel that was built in 1928. It has 597 boutique-style guestrooms which are in strong demand as a result of the hotel's prime location in the heart of Times Square. The property was most recently refurbished in 2009 with upgrades to guest rooms, bathrooms and public areas. Highgate Holdings, a national hotel manager, will continue to operate the Paramount on behalf of new ownership. Highgate also manages another unrelated national hotel portfolio on behalf of Investcorp.

The Paramount Hotel is proud to open our April 2009 renovation , which includes new furnishings, tidy, today's decor, excellent bathrooms and hedonistic linens throughout the total hotel. Even our most patriotic guests will be amazed at the transfigurement!

The streamlined, smart lodger rooms at the Paramount Hotel in New York Urban district’s Times Square are infused with up to date sensibility and outline, yet stop take to the devilish, starting intention of The Paramount Hotel. The Paramount was built so that visitors could wisdom peace in the elaborate forthrightness of their Midtown Manhattan boutique hotel area or escort.

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