£29m debt facility for Silverstone hotel
RCP Finance has finalised a debt facility which includes EVH Finance and Banor Capital for Bricks Group that allows completion of an eye-catching hotel – the first at Silverstone, the world-famous racetrack in Northamptonshire that hosts the Formula One British Grand Prix. The phased opening will be one of the most high-profile completions in the world this year by Hilton Hotels & Resorts.
With the hospitality sector having been particularly badly hit during the pandemic, completing this deal is especially noteworthy at this time. With Britons expected to go on a £50bn spending spree when Covid rules are lifted (according to the Centre for Economics & Business Research), this deal signposts an improving landscape for real estate capital expenditure, especially on leisure projects, and points towards ‘green shoots’ of economic recovery.
The £29m debt facility was overseen and arranged by RCP Finance, the pan-European property finance specialist, and included EVH Finance, the real estate development finance lender, covering £20.8m of the facility, and Banor Capital, an investment management firm, agreeing to the remaining £8.2m. Bricks Group, the privately-owned developer, has invested £11m of equity and is using this funding to complete the Hilton Garden Inn Silverstone in a spectacular position overlooking the start/ finish line and pit lanes at the UK’s premier motor racing circuit.
Christopher Khoi, managing director of RCP Finance, said: “This was a complex and challenging loan to arrange and demonstrates our creative approach, market knowledge and wide sector experience in property lending. The hotel will be a significant addition to one of Europe’s leading sports and leisure destinations. At RCP Finance, we’re thrilled to be involved with such an iconic scheme in the birthplace of British motor racing, and we all look forward to continuing our long-standing relationship with Bricks Group, one of the premier hospitality developers in the UK.”
The five-storey hotel will have 197 guest rooms and suites, a signature rooftop terrace bar suitable for up to 200 guests, and raceday hospitality facilities with exhilarating views over the full-throttle final straight. Celebrity chef and car enthusiast James Martin will ensure the dining is as memorable as the location.
Peter Prickett, chief executive officer of Bricks Group, said: “ This is a once in a lifetime opportunity to develop an asset in such an iconic location and brand. This hotel complements and enhances the ambitions of Silverstone circuits. Working closely with our friends at Hilton we are super excited about providing world class hospitality for all. RCP, EVH and Banor have been great to work with and we look forward to completing more deals together in the future.”
Before the pandemic, the historic motoring circuit welcomed over a million visitors a year, with projections to double that with non-race day attractions. The new year-round destination will appeal to business travellers, event organisers, weekenders or anyone seeking a unique and memorable place to stay. A footbridge crosses over the circuit linking with the Silverstone Wing Conference Centre, which has space for 3,000 people and 12,500 square metres of events’ space, and will be enhanced with the addition of the hotel on the circuit.