Union Investment has acquired the Wilde by Staycity hotel development in London from developer Regal London for €60 mln.
The 14-storey aparthotel, due to complete in November 2021, will have 156 rooms with kitchenettes, a coffee shop and a gym. It offers 5,737 m2 of rental space and is situated on the corner of Commercial Road and Greenfield Road on the eastern fringe of the City of London.
Staycity already operates two Wilde by Staycity hotels in London and has signed a 30-year lease.
The acquisition will be added to the holdings of open-ended real estate fund Unilmmo: Deutschland. Regal London secured planning permission for the site in June 2019 and optimised the existing commercial building design to deliver the hotel scheme.
Andreas Löcher, head of investment management hospitality at Union Investment, said: 'London is one of the strongest hotel markets in Europe, and aparthotel concepts have shown themselves to be resilient during the coronavirus pandemic.
'We’re delighted to be adding Staycity to our hotel portfolio as a financially strong tenant with a well-known brand who is making a long-term commitment to this location.'
Paul Eden, joint founder at Regal London added: 'Our Commercial Road development is a great example of how we work successfully to transform local areas through innovative mixed-use schemes, providing valuable residential, commercial and retail opportunities across London.
'As part of this approach, it has been a pleasure to work with Union Investment to deliver an aparthotel strategy at Commercial Road and we look forward to a long and successful relationship with them.'
The location has excellent links to public transport, with Aldgate and Aldgate East underground stations just a few minutes’ walk away. The intention is to achieve a BREEAM sustainability rating of Very Good for the building.
Cushman & Wakefield advised Union Investment on the transaction.
Image copyright Dexter Moren Associates LSI Architects
