PGIM Real Estate said today it has formed an investment partnership with Cairn Group’s newly formed division to take advantage of a recovery in the UK hotel sector.
PGIM Real Estate, investing on behalf of a value-add strategy, has teamed up with Madison Cairn with a plan to acquire, develop and reposition hotels.
The manager said the venture, which has already secured a strong pipeline of activity, has made its first investment in Brighton.
Charles Crowe, managing director and head of UK transactions at PGIM Real Estate, said: “At PGIM Real Estate, we’ve been investing in Brighton hotels since 2013 and have tracked this opportunity for some time.
“We are delighted to be working with the Madison Cairn team, who are one of the most experienced operators in the sector.”
Aneil Handa, director of Madison Cairn, said: “We are privileged to be working with one of the world’s largest real estate managers, in a partnership where our skills complement each other’s perfectly and position us well for our next chapter of growth in the sector.
“The acquisition of our first hotel together is a key milestone, with the joint venture having appetite for further expansion.”
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