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UK: Penta Real Estate and operator Staycity Group have established a £230 million joint venture (JV) to deliver a new 350-room aparthotel in central London.
The project will transform Morley House, an established and evolving London office hub near Holborn Viaduct in Farrington. The site offers quick access to the Elizabeth Line, Thameslink and multiple underground services.
The JV will be split 80:20 with Penta Real Estate as the majority shareholder, following the firm’s 1,000-new home, £1 billion JV with Ballymore.
The 11-storey aparthotel will be branded under Wilde. It will feature 350 rooms with fully-equipped kitchens, commercial office space, and a ground floor with a café, bar and coworking lounge areas open to both guests and the public. The scheme will also refurbish the Grade II-listed City Temple Church, a community heritage asset.
Construction is expected to begin immediately after demolition of the existing office block, and the project is set to complete in 2029. Altius Real Estate will be the development manager, after helping to secure full planning consent for the site.
“This is a really exciting project in a lively and dynamic part of London,” said Pavel Streblov, Penta Real Estate’s country managing director. “At Penta, we have significant investment appetite for London and delivering high-quality, sustainable and thoughtful development projects in vibrant locations such as Farringdon truly plays to our strengths.”
This development is Staycity Group’s seventh site in London, building on its existing portfolio of £700 million gross development value (GDV) of hotels under development in London.
Barry Hickey, Staycity Group’s managing director for real estate development, added: “The Morley House scheme represents the group’s largest transaction to date and our second large-scale Wilde offering in London, following the opening of our Paddington location in 2021. This cements our position as a significant player in the London real estate market, having structured the transaction, convened key partners and secured investment from leading global financial institutions.”
Highlights:
- Penta Real Estate and Staycity Group have formed a £230 million joint venture. The partnership will develop a 350-room aparthotel at Morley House in central London.
- The joint venture is split 80:20. Penta Real Estate holds the majority stake, while Staycity Group will operate the property under its Wilde aparthotel brand.
- The 11-storey Wilde aparthotel is scheduled to open in 2029. Construction is expected to begin after the demolition of the existing office block, with Altius Real Estate acting as development manager.
- The property will combine apartment-style living with hotel services. Guest facilities will include fully equipped kitchens, a café, bar, coworking lounges and 24-hour reception, with shared spaces open to the public.
- The development will expand Staycity’s London presence, becoming the group’s seventh site in the capital and includes the refurbishment of the Grade II listed City Temple Church.
