CBRE Global Investors has acquired Park Plaza London Waterloo hotel, Hercules Road, Waterloo, Central London in a club deal for a number of its pension fund investors. The hotel has been bought for circa £160 million. The PPHE Hotel Group have committed to a sale and long term leaseback through the hotel owing entity, Waterloo Hotel Holdings BV. The initial rent of over £5.6m will be reviewed annually to the Retail Price Index.
The Park Plaza hotel is a newly completed upper upscale full service hotel with 494 bedrooms. The hotel is equipped with restaurants, swimming pool, fitness centre, spa and business centre.
The hotel is located 350m from Waterloo station and Lambeth North tube station is opposite. It is walking distance to a number of tourist destinations, including The London Eye and the London Aquarium.
Michael Ness, Head of UK, CBRE Global Investors said: “This bespoke deal has been created as a club deal to suit the specific requirements of ten of our pension fund clients. 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. 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.”
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About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $86.5 billion in assets under management* as of March 31, 2017. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has more than 75,000 employees in approximately 450 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.~
About PPHE Hotel Group
PPHE Hotel Group is a Guernsey registered company and through its subsidiaries, jointly controlled entities and associates, owns, leases, operates, franchises and develops full-service upscale, upper upscale and lifestyle hotels in major gateway cities, regional centres and select resort destinations, predominantly in Europe.
The majority of the Group’s hotels operate under the Park Plaza® Hotels & Resorts or art’otel® brands. The Group has an exclusive licence from Carlson Hotels Worldwide Inc., one of the world’s largest hotel groups, to develop and operate Park Plaza® Hotels & Resorts in Europe, the Middle East and Africa.
The art’otel® brand is wholly owned by the Group.
The Group has a controlling ownership interest (51.97% of the share capital) in Arena Hospitality Group, one of Croatia’s best-known hospitality groups.
The Group’s portfolio of owned, leased, managed and franchised hotels comprises 39 hotels offering a total of approximately 9,000 rooms. The Group’s development pipeline includes two new hotels which are expected to add an additional 500 rooms by the end of 2019.