CBRE acquires London hotel for £160m
CBRE Global Investors has acquired Park Plaza London Waterloo hotel, Central London in a club deal for a number of its pension fund investors. The hotel has been bought for circa £160m. The PPHE Hotel Group have committed to a sale and long term leaseback through the hotel owing entity, Waterloo Hotel Holdings BV. The initial rent of over £5.6m will be reviewed annually to the Retail Price Index.
The Park Plaza hotel is a newly completed upper upscale full service hotel with 494 bedrooms. The hotel is equipped with restaurants, swimming pool, fitness centre, spa and business centre.
The hotel is located 350m from Waterloo station and Lambeth North tube station is opposite. It is walking distance to a number of tourist destinations, including The London Eye and the London Aquarium.
Michael Ness, head of UK, CBRE Global Investors said: “This bespoke deal has been created as a club deal to suit the specific requirements of ten of our pension fund clients. These clients are seeking long-term investments with inflation-linked income derived from prime assets, and we would expect this to be held long-term. This is an attractive investment opportunity in the heart of London on a site with high residual value but also leased to a major global hotel operator, offering considerable security. We feel that we have acquired an asset that will provide our clients with a robust and reliable income stream over many years.”