Forsters advise on Vauxhall forward funding
Forsters has advised HIFML UK Property Fund managed by (SWIP) Scottish Widows Investment Partnership in relation to the £17.5 million funding of a hotel and retail development in a prime site located next to South London transport hub, Vauxhall Station Interchange. The developer was Salmon Harvester Properties, a joint venture between Salmon Developments and NFU Mutual.
The 148 bed hotel is let to Travelodge on a 35 year term with 5 yearly upward only RPI linked rent reviews. The ground floor retail space is let to Waitrose on a 15 year term and will operate as part of its convenience store "little Waitrose" brand. Salmon Harvester forward sold the development to SWIP in June 2011 with practical completion reached in early April 2013. The tenants are now in occupation, with completion of the leases taking place on 9 May 2013.
Geoff Hepburn, Deputy Fund Manager, HIFML UK Property Fund commented: “We are delighted to have funded this scheme on behalf of HIFML. We expect the investment to deliver positive performance owing to its excellent fundamentals; being very well connected in a growth location, let on long leases.”
Commercial Property partner, Howard Gill, led the team assisted by Ruth de Maupeou. Partner Andrew Parker advised in relation to construction matters.