News
20.10.2021

VALOREM SIGNS WITH AVIVA INVESTORS ON LIVERPOOL DALATA HOTEL FUNDING IN CLEAR DEMONSTRATION OF CONFIDENCE IN UK REGIONAL HOTELS

Valorem Investment Partners, advised by BNP Paribas Real Estate, has completed a Development Funding Agreement with Aviva Investors for the delivery of a 260 bed Dalata Maldron 4* hotel on its prime located One Park Lane, Liverpool site. 

McAleer & Rushe is appointed to build the hotel and construction will start in early 2022 with a programmed opening date of autumn 2023.

The hotel is pre-let to Dalata Plc on a 35 year lease with inflation linked rent uplifts through the term.  The hotel will trade as a Dalata Maldron hotel, its 4* lifestyle brand.

Aviva Investors, advised by Kimmre, is forward funding the £37.5M development on behalf of the Aviva Linked Property Fund which will benefit from the quality long term index linked income stream post completion of the development.

The transaction is the first new regional forward funding since the pandemic started in March 2020 and following a great staycation summer reflects strong and growing confidence in UK regional hotels, a belief in Liverpool specifically as one of the strongest, balanced and resilient UK hotel markets and of equal importance the quality and strength of Dalata and the created income stream.

Martin Claisse, Head of Development, Valorem, said: “We are delighted to be working with partners of the calibre of Aviva and McAleer & Rushe to deliver what will be the most significant addition to the hotel offer in Liverpool in recent years. To be bringing this site forward so shortly after such a difficult period with Covid is a testament to our team.”

John Osborn, Fund Manager, Aviva Investors, added “The attractiveness of this investment for the Fund is underpinned by the strength of the City centre location and the long indexed income stream. We are delighted to be working with our development partners and look forward to seeing this exciting development being delivered”

Richard Talbot-Williams, Senior Director, Alternative Markets, BNP Paribas Real Estate, comments: “This will be one of the best and most successful hotels in in a fantastic city centre location in one of the UK’s strongest regional hotel markets.  One Park Lane is perfectly located between the Baltic Triangle, Liverpool One and The Albert Dock and the Dalata Maldron hotel will appeal to a broad mix of leisure and business demand from both UK and international travellers.

“This new partnership between Valorem, Aviva, Dalata & McAleer & Rushe demonstrates that the UK hotel development market is open for business and bouncing back from an understandable COVID pandemic new development pause.”

Mike Burden of Kimmre summed up saying: “This is a fantastic opportunity for Aviva to increase their exposure to the long income hotel market underwritten by a strong tenant and exceptional geographic location. The deal will be very welcome by the wider market, demonstrating a return to liquidity for hotel development funding.”

VALOREM SIGNS WITH AVIVA INVESTORS ON LIVERPOOL DALATA HOTEL FUNDING IN CLEAR DEMONSTRATION OF CONFIDENCE IN UK REGIONAL HOTELS