UBS Asset Management (UBS-AM) Real Estate & Private Markets (REPM) is providing equity funding to help develop a £100m (€116.4m) hotel and office tower in the UK.
UBS-AM REPM is providing the capital, alongside development partners BSW Land & Property and Pickstock Group, for the development of the 39 East Road asset in Central London. The asset will be owned by UBS.
The 23-storey building will include 18 floors of hotel space, above 25,000sqft of office space. The hotel has been pre-leased on a 30-year lease to hotel operator Motel One.
Gijsbert van Riemsdijk, the head of investment management, EMEA ex DACH at UBS-AM REPM, said the asset is expected to provide attractive risk-adjusted returns driven by the 30-year pre-lease in place to a strong hotel operator, which accounts for approximately 70% of the end value of the scheme.
“We look forward to managing the development of the site in the coming years alongside our partners, with its location and profile aligning well with our positive outlook for the Central London market.”
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