AXA Investment Managers - Real Assets has committed, on behalf of a U.S. pension fund, to the acquisition of the shell and core from the Berkeley Group, and to undertake the fit-out of a new hotel complex in central London, representing a total investment of an estimated £90 million. Construction of the hotel is already under way, and shell-and-core delivery is planned for early 2018.
This transaction is poised to further strengthen AXA IM - Real Assets' €2.7 billion alternatives platform, which includes healthcare facilities, hotels, and forestry assets, primarily in Europe. €1.5 billion of that total is dedicated to the company's hotel portfolio.
According to Property Week, the City Road hotel will be fitted out and operated by NH Hotels Group. The eight-story hotel's exterior envelope was designed by British architects Foster + Partners as an upscale space in the London sub-market; the interior will have 190 guestrooms. NH Hotels Group will operate the hotel under its NHow brand.
The Berkeley Group secured planning permission for the 5.5-acre 250 City Road development project in August 2014 and, in addition to the four-star hotel, the 1.2 million-square-foot mixed-use plan will include 75,000 square feet of office space, an estimated 40,000 square feet of retail space and 933 residential apartments. The development, adjacent to Old Street roundabout, is poised to benefit from the anticipated growth of East London's Tech City due to both its central location and connectivity, with a number of tube and over-ground stations nearby.
JLL and Hall Kemp acted as joint-advisers to the vendor.