As part of a recent move into hotel development funding, UK-based privately-held group Topland has provided a £20 mln (€25 mln) financing facility to Marick Capital, for a hotel in London’s Docklands.
As part of a recent move into hotel development funding, UK-based privately-held group Topland has provided a £20 mln (€25 mln) financing facility to Marick Capital, for a hotel in London’s Docklands.
Topland has committed to deploy £200 mln to the hotel development sector.
Topland’s executive chairman Sol Zakay said: 'Topland now has a portfolio of 30 directly-owned hotels and we continue to see value in this sector and have ambitious expansion plans. In addition, as a lending business we recognised the potential in the sector and the funding gap that exists, with banks still showing very little appetite for hotel development funding. As you would expect Topland has capitalised on the opportunities which this presents.'
Marick will use the funds to develop a 190-bedroom hotel understood to be a Hampton by Hilton, between Excel and City Airport.
The hotel, with a gross development value of £35 mln, is part of the new leisure quarter of three hotels. It will sit between a 131-bed Travelodge, which is trading very strongly and a four-star hotel which is due to start on site shortly.
Topland's Structured Finance manager Edward Matthews added: 'The fundamentals of this deal were particularly sound. Marick is a very experienced real estate player and this location makes great sense.'