Aviva Investors has bought a £106m (€124m) hotel development site in East London on behalf of its long-income real estate fund.

The £2.7bn Lime Property Fund has acquired the site in the Docklands, which will be developed by into a 30-storey 400-bed Premier Inn hotel.

Whitbread, Premier Inn’s parent company, will take a 35-year lease on the hotel and restaurant.

The site, which will be developed by Rockwell, is expected to be completed early 2022.

Kris McPhail, fund manager, Aviva Investors, said: “We are pleased to participate in this scheme with Rockwell and play a part in rejuvenating the site.

“The transaction provides our investors with an attractive 35-year inflation-linked income stream from a market-leading UK corporate, underpinned by strong real estate with excellent transport links. These are exactly the type of investments we target for the Lime Property Fund.”

The fund targets property investments that provide inflation-linked or fixed-rental uplifts let to strong tenants on leases of at least 15 years, cross-sector, UK-wide.

Donal Mulryan, founder of Rockwell, said: “We are delighted to complete the £106m transaction with Aviva Investors, for the exceptional hotel-led scheme positioned in a prime location adjacent to Westferry DLR station.

“This notable acquisition further demonstrates our proven track-record and supports our ambitious plans for the London hotel sector with the creation of more than 2,500 hotel rooms.”