CBRE Global Investors has acquired a London hotel for £160m (€182m) for a club of pension funds.
Owner and operator PPHE Hotel Group has committed to a sale and leaseback on the Park Plaza London Waterloo hotel in the Waterloo area of central London.
Michael Ness, head of UK at CBRE Global Investors, said: “This bespoke deal has been created as a club deal to suit the specific requirements of 10 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.”
The initial rent of over £5.6m will be reviewed annually against the retail price index.
The Park Plaza hotel is a newly completed ‘upper upscale’ (just below luxury) full-service hotel with 494 bedrooms, restaurants, swimming pool, fitness centre, spa and business centre.
“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,” Ness said.
“We feel that we have acquired an asset that will provide our clients with a robust and reliable income stream over many years.”