CBRE Global Investors has purchased a hotel in London's Waterloo district from the PPHE Hotel Group, for £160 mln (€182 mln).
The sale-and-leaseback transaction for the Park Plaza London Waterloo hotel was structured as a club deal for a number of CBRE GI's pension fund investors. The PPHE Hotel Group has committed to a long term lease for the property, with an initial rent of over £5.6 mln (€6.4 mln), which will be reviewed annually.
'This bespoke deal has been created as a club deal to suit the specific requirements of ten of our pension fund clients,' commented Michael Ness, head of UK, CBRE Global Investors. 'These clients are seeking long-term investments with inflation-linked income derived from prime assets, and we would expect this to be held long-term.'
The newly completed hotel, which has 494 keys, is equipped with restaurants, a swimming pool, fitness centre, spa and business centre.
'This is an attractive investment opportunity in the heart of London on a site with high residual value but also leased to a major global hotel operator, offering considerable security. We feel that we have acquired an asset that will provide our clients with a robust and reliable income stream over many years,' concluded Ness.
