AXA Real Estate Investment Managers has completed the acquisition of the IBIS London City Hotel on behalf of the Co-operative Insurance Society (CIS) for £38.35 mln (EUR 44 mln). The vendor was Mangrove Securities.
AXA Real Estate Investment Managers has completed the acquisition of the IBIS London City Hotel on behalf of the Co-operative Insurance Society (CIS) for £38.35 mln (EUR 44 mln). The vendor was Mangrove Securities.
AXA REIM has a EUR 2 bn portfolio of European hotels and managed over EUR 40 bn of assets at end-June 2011.
IBIS London City Hotel is located on Commercial Street in the City of London. The property comprises 348 rooms, arranged over 10 floors, with a 150-seat restaurant and bar.
The hotel trades under the IBIS brand, as a 'contemporary economy London Hotel', which is the European leader and fourth globally within this market. With a well secured tenant and the opportunity to benefit from rental increases linked in part to turnover, income from this acquisition is expected to grow in line with an increasingly profitable economy hotel market, AXA said.
In particular, the hotel is expected to to profit from the increased number of visitors expected for the upcoming 2012 Olympics.
The hotel is operated by hotel group, Accor, which already operates 70 of the hotels within AXA Real Estate's managed portfolio. The current rent for this hotel is £2.6 mln per annum (£7,600 per room per annum), with a total of 19 years left on the fully repairing and insuring lease to Accor UK Economy Hotels.
MBH acted for CIS and DE& J Levy acted for the vendor.
