UK: German fund manager Union Investment has acquired a Wilde by Staycity aparthotel which is currently under construction on London’s Commercial Road.
The 14-storey aparthotel will have 156 rooms with fully equipped kitchenettes, a coffee shop and a gym. Staycity already operates two Wilde by Staycity hotels in London and has signed a 30-year lease.
The acquisition will be added to the holdings of open-ended real estate fund Unilmmo: Deutschland. The vendor is Regal London, one of London’s leading residential-led mixed-use developers, which secured planning permission for the site in June 2019 and optimised the existing commercial building design to deliver the hotel scheme. The purchase price is around €60 million.
“London is one of the strongest hotel markets in Europe, and aparthotel concepts have shown themselves to be resilient during the coronavirus pandemic. We’re delighted to be adding Staycity to our hotel portfolio as a financially strong tenant with a well-known brand who is making a long-term commitment to this location,” said Andreas Löcher, head of investment management hospitality at Union Investment.
Paul Eden, joint founder at Regal London added: “Our Commercial Road development is a great example of how we work successfully to transform local areas through innovative mixed-use schemes, providing valuable residential, commercial and retail opportunities across London. As part of this approach, it has been a pleasure to work with Union Investment to deliver an aparthotel strategy at Commercial Road and we look forward to a long and successful relationship with them.”
The Wilde by Staycity aparthotel will offer 5,737 square metres of rental space and is situated in a prominent location on the corner of Commercial Road and Greenfield Road on the eastern fringe of the City of London, which has undergone significant regeneration in recent years.
The intention is to achieve a BREEAM sustainability rating of “Very Good” for the building.
Cushman & Wakefield advised Union Investment on the transaction.
