UK ground rents fund completes largest regional hotel transaction

A commercial ground rent fund backed by UK pension schemes has completed its largest UK regional hotel transaction to date.

The Index Linked Income Fund (ILIF) has completed a £40m (€45m) deal to acquire the ground rent on the De Vere Beaumont Hotel in Old Windsor from funds managed by Starwood Capital Group.

The fund’s manager Alpha Real Capital said ILIF now has £400m of hotel ground rent assets under management and has funded over £1bn worth of hotels with ground rents to date.

Hugo James, partner and head of long income at Alpha Real Capital said: “The quality of the property and position close to London provides confidence this asset will maintain its position as one of the leading conference hotels in the UK with significant scope for further growth in trading.

“The fund has a strong pipeline of new transactions in due diligence partnering with both buyers of assets in competitive processes and refinancing of existing facilities.”

Phillip Rose, CEO, Alpha Real Capital said: “Alpha works very closely with real estate owners and operators to deliver flexible long-term capital solutions.

”Alpha’s reliability and responsiveness to the needs of both owners and operators is reflected in the £1.5bn of commercial ground rent investments we have made over the last few years.”

ILIF is a commercial ground rent fund launched by Alpha in 2015 with the backing of leading UK defined benefit pension funds to invest in UK inflation-linked commercial ground rents.

Related images

  • De Vere Beaumont Estate Hotel, Old Windso

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