CBRE ADVISES FROGMORE ON SALE OF SOUTH PLACE HOTEL IN LONDON
CBRE Hotels has advised on the sale of South Place Hotel in London on behalf of Frogmore, to an international investor.
The high end boutique hotel, built by Frogmore in 2012, totals 63,401 sq ft and comprises of 80 bedrooms. The hotel which is operated by D&D, one of the leading F&B operators in the UK, includes the Michelin starred Angler restaurant, the South Place Chop House and the Secret Garden, as well as event space and a spa & gym.
Prominently located between Moorgate and Liverpool Street stations the hotel is set to benefit from the new Crossrail station at Liverpool Street set to open in 2018.
Marc Nelson, Director, CBRE Hotels, said: “This deal demonstrates the sustained interest from international buyers to London as well as the significant appetite from long-dated fixed income investments in the hotel sector. 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.”
Jo Allen, Chief Executive, Frogmore, added: “This sale marks the conclusion of the Frogmore team’s combined involvement in developing South Place Hotel. The site was acquired for our first real estate private equity fund, FREP 1, and originally intended for office use. 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. Frogmore wishes the new owner and D & D every success with the ongoing venture.”
Savills represented the buyer. Pinsent Masons acted as legal counsel for Frogmore.