Northern Ireland: The Northern Ireland Investment Fund (NIIF) has provided a £28 million loan to JMK Group to fund the development of a dual-branded Aloft and Residence Inn by Marriott in the Titanic Quarter of Belfast.
The project will feature a 228-bed Aloft Hotel and Residence Inn Aparthotel under a Marriott franchise agreement. It is located at the Hamilton Dock Hotel site, near the Titanic Exhibition and SSE Area.
Construction has already begun and will provide 60 jobs during the development and 70 full-time jobs when complete. It aims to achieve a BREEAM Excellent status, with an EPC A and LEED Gold ratings. Planning was secured in 2022.
It marks the largest loan since the inception of NIIF in 2018, which was established to enable real estate projects that support “innovation, businesses, energy efficiency, low carbon energy generation and job creation”.
The fund has recently increased in size to £150 million (up £50 million) and is managed by CBRE’s lending team.
Herbin Duffield, director at CBRE said: “When the Northern Ireland Investment Fund (NIIF) launched, there was sufficient debt liquidity and supply of new hotel developments in Belfast. The pandemic and rising interest rates have tested those conditions, and supply and debt liquidity is now more constrained.
“NIIF is addressing market failure and providing debt funding that will create jobs in a key regeneration area in the city’s Titanic Quarter by delivering a hotel with strong environmental and sustainability credentials. Having explored a range of funding options and solutions for this site, we are delighted to have committed a loan facility to finance the delivery of this project.”
Zain Kajani, director at JMK added: “We are pleased to have the funding in place and break ground at the JMK group’s first hotel in Northern Ireland, adding further depth to our hotel portfolio in the UK and Republic of Ireland, and aligning with our expansion strategy and forward-thinking approach to drive sustainability. The combination of the international brand and the asset being in a prime location in front of the Titanic Museum, which is Belfast’s number one tourist attraction, will ensure the hotel and aparthotel have a bright future ahead.”
Kajani added: “Furthermore, the asset will be one of the greenest hotels in Northern Ireland with BREEAM ‘Excellent’ and LEED ‘Gold’ credentials aligning with the group’s sustainable strategy. The financing from the Northern Ireland Investment Fund and approach by CBRE were crucial to ensuring the successful delivery of this project.”
