forward funding

Ground Lease Funding

Hampton by Hilton, Waterloo

Located on Waterloo Road near Waterloo Station, this 282 bedroom hotel includes a ground floor bar, restaurant, gym and meeting rooms. This landmark hotel is not only the first Hampton by Hilton in London but is also the largest Hampton by Hilton outside USA.

A forward funding ground lease was agreed as part of the capital stack in respect of the development of 282 bedroom hotel. The ground rent premium bridged the funding gap between the available debt and equity package.

The ground rent premium was paid in stages that reflected the underlying value of the site and construction programme, with a balancing payment at practical completion.