Dalata Maldron Liverpool, P.ValoremIP
McAleer & Rushe has been appointed as the main contractor for the Liverpool project. Credit: ValoremIP

Aviva to forward fund £37.5m Liverpool hotel 

Dan Whelan

Valorem Investment Partners has secured funding for the 260-bedroom Dalata Maldron Hotel on the corner of Park Lane and Liver Street. 

The £37.5m transaction is the first regional forward funding agreement since the pandemic started in March 2020, according to Dalata, and “reflects strong and growing confidence in UK regional hotels”. 

The hotel is pre-let to Irish operator Dalata on a 35-year lease with inflation linked rent uplifts throughout the term. The hotel will trade under the company’s four-star lifestyle brand, Maldron. 

McAleer & Rushe has been appointed as the main contractor for the Liverpool project, which is due to begin early next year. The hotel is scheduled to open in mid-2023. 

Developer Elliot Group used to part-own the site but Valorem took full control of it last year. The hotel will sit alongside the Heap’s Rice Mill site, earmarked for redevelopment into around 400 apartments by Valorem. 

Aviva is funding the hotel project through its Linked Property Fund and was advised by Kimmre. 

Valorem Investment Partners was advised by BNP Paribas Real Estate.  

“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,” said Richard Talbot-Williams, senior director of alternative markets at BNP Paribas Real Estate. 

“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.”
 
Martin Claisse, head of development at 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 at Aviva Investors, said: “The attractiveness of this investment for the fund is underpinned by the strength of the city centre location and the long-indexed income stream.”

In 2018, Aviva agreed to forward fund a 329-bedroom Clayton Hotel in Manchester, developed by Property Alliance Group. The Clayton chain is part of the Dalata Group.

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Very Welcome news for this site.

By Liverpolitis

Great news Liverpool is a very attractive city and people love coming there

By Anonymous

Oh dear another half occupied hotel. Offices. Offices are what Liverpool needs. Do they think no one works here?

By Anonymous

This is very welcome news. Liverpool could do with some more office space and hopefully some good news about its NPR/HS2 connection but things are slowly coming back to life.

By Chris

Excellent news and long overdue, both football teams are expanding or renewing their stadiums so lots more hotel beds will be needed, in addition to the stream of other visitors to the city.

By Anonymous

Looks good…pleased to see continued confidence in Liverpool…BUT next door is Heaps Rice Mill …perhaps the most important heritage landmark building in Liverpool town centre ….which is being left to rot ….perhaps the owner hopes to be able to reinstate his plans to demolish the building as it becomes unsafe ….this needs urgent enforcement action by the council

By George

Phew I’m so happy they are not knocking the Heaps Rice building down. Hopefully redevelopment will start on that building soon. Also this hotel design looks brilliant. A welcome edition to the area. Well done

By David

A nice looking building…will add to the amenities in this attractive location

By Tercol

A well designed hotel in that location works all day – bring it on.

By oscar

If the country’s most useless council are involved, it will be abandoned half way through and they will go into administration, I wouldn’t trust this council to build a Wendy house

By Bryan