ActivumSG checks into hotel-led asset in Greater London

Upon closing, the non-hospitality elements (residential, retail and freehold interest) of the scheme were successfully sold in multiple back-to-back disposals. This significantly de-risked the transaction and allowed for the retention of the two hotels (a 99-key Ibis hotel and a 59-key Adagio aparthotel).

The retained hospitality assets were financed with an attractively priced senior loan provided by Leumi UK, led by Leumi’s relationship director Steve Crosswell.

Sutton Point is located adjacent to Sutton train station, which provides access to central London in under 30 minutes via the Thameslink and Southern railway lines. The site was originally developed in 2019/2020, with a third party forward purchasing the build-to-rent residential components of the wider scheme.

The asset is labelled BREEAM Excellent, and the Adagio and Ibis hotels benefit from EPC ‘A’ and EPC ‘B’ ratings, respectively.

James de Lusignan, UK managing director, ActivumSG, said: 'Sutton Point represented a unique opportunity to acquire a recently developed, high-quality asset at significantly below replacement cost. The complexity of this transaction would have dissuaded many other buyers, but we identified significant unlocked potential through our collective skillset and local, in-country presence.'

James Gibbs, managing director and head of Europe, Global Hospitality Investment Group, said: 'Sutton Point exemplifies our ability to collaborate with a market-leading private equity firm to source and execute on highly complex hospitality-led investments and is a prime example of a great asset with an impaired balance sheet.

'Immediate value was created through the back-to-back sales on the non-hospitality component whilst there remains significant additional upside to unlock via optimizing hotel operations.'