UK fund manager Frogmore has sold the South Place hotel in London hotel for a reported £67 mln (€78.1 mln). The buyer is believed to be Tian An China Investments Company.
The 80-bedroom hotel between Liverpool Street and Moorgate is operated by D&D London, who have been retained by the new owners, according to trade publication The Caterer.
CBRE Hotels, who advised on the deal, said London continued to be an appealing location for international buyers, particularly those looking for long-dated fixed income investments in the hotel sector.
Director Marc Nelson added: 'In this low interest rate environment, the allocation of hotel real estate within investment portfolios continues to remain attractive to investors, given the enticing risk-adjusted returns and ability to appropriately match long-term liabilities with long-term investments.'
Frogmore's chief executive Jo Allen said the deal concluded the firm’s interest in the development of the site, which was originally intended for office use.
She added: 'We were delighted to work with Gerard Nolan & Partners on a pre-letting of the hotel to D&D, followed by securing planning consent, undertaking construction and watching the hotel revenue grow and stabilise.'
