Privately held real estate investor Cain International has agreed to a £74 mln (€83 mln) development loan with Canary Wharf Group and edyn – the hospitality group behind lifestyle aparthotel brand Locke – to finance the development of a 279-key Locke aparthotel in Wood Wharf, London, Canary Wharf’s new mixed-use district.
The 130,000 sq ft (12,000 m2) development will comprise 194 design-led studio apartments of 25 m2, and 85 larger apartments of approximately 32 m2, all of which will offer almost twice the space of a typical boutique hotel room, and benefit from a kitchen and living area. In addition, guests will have access to a range of amenities including a workout studio, a coffee shop and bar, a rooftop restaurant, private meeting and event spaces, co-working space and 300 m2 of retail space.
The aparthotel will be located in the north west corner of Wood Wharf, a new vibrant neighbourhood in Canary Wharf, and will be in walking distance to all major corporate occupiers in the area as well as connected to the rest of London via the Jubilee line, DLR, Thames Clipper and the new Crossrail Elizabeth line.
The development will be delivered by Canary Wharf Contractors. Construction works commenced December 2020.
Matteo Milan, principal at Cain International, is confident that ‘hospitality assets which deliver the right offering to their local market will recover quickly in a post-Covid environment’. ‘We anticipate that aparthotels will experience a particularly pronounced uptick in performance as businesses look for a more cost-effective alternative to hotels and as increased flexible working might lead more individuals to live further out from city centres, increasing the need for occasional overnight stays or accommodation when working on a specific project.’
At the end of 2020, edyn reported its portfolio – which includes lifestyle aparthotel concept Locke and serviced apartment brand Saco – had shown resilience during the pandemic, largely due to its efficient business model and compatibility with extended stay. edyn properties maintained an average occupancy of 65% in 2020; and the latest addition to the Locke portfolio in London, Bermonds Locke in Bermondsey, retained an outstanding average occupancy of 75% since opening in September.
