Thursday, 9 October 2014
Topland funds €44 million hotel for Marick Capital (UK)
In a recent move into hotel development funding Topland has provided a £20 million (€25 mln) finance facility to Marick Capital, for a hotel in London’s Docklands.
Topland has committed to deploy £200 million (€253 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 recognized 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 capitalized 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 GDV of £35 million (€44 mln), is part of the new leisure quarter of 3 hotels. It will sit between a 131-bed Travelodge, which is trading very strongly and a 4 star hotel is due to start on site shortly.
Topland Structured Finance manager Edward Matthews said: “The fundamentals of this deal were particularly sound. Marick is a very experienced real estate player and this location makes great sense.”
Matthews added: “In addition to being able to transact quickly, Topland's hotel sector expertise means that for hotel development finance we provide a particularly compelling offer.