Capco has exchanged contracts to sell an island site in the south-east corner of Covent Garden for £76.5m to APG and London Central Portfolio’s joint venture, The Portfolio Club.
The site, known as the Wellington block, WC2, is formed of six properties – 25-31 Wellington Street, 23 Wellington Street, 15 Exeter Street, 12 & 14 Burleigh Street and Burleigh House – providing 66,000 sq ft of space.
However, the site comes with planning to turn the buildings into a 146-bedroom hotel with retail and restaurant space.
APG and London Central Portfolio formed The Portfolio Club to create a new lifestyle hospitality brand in across prime central London locations.
Ian Hawksworth, chief executive of Capco, said: “We are pleased to introduce The Portfolio Club and APG to the estate as innovative owner operators to redevelop the Wellington block into their contemporary hotel which will further contribute to Covent Garden’s position as a world-class destination.”
Naomi Heaton, chief executive of The Portfolio Club, added: “Covent Garden, under Capco’s stewardship is an increasingly thriving and sought after location with huge appeal to both the domestic and international market.
“This will be a cornerstone of our new lifestyle brand of Residents’ Clubs to be rolled out in prime central London neighbourhoods and internationally, following the acquisition last year of the Harrington Hall Hotel in South Kensington by the joint venture partnership between LCP and APG.”
Robert-Jan Foortse, head of European property investments at APG, said: “APG is delighted to further broaden The Portfolio Club investment programme with the acquisition of the Wellington block in Covent Garden. This represents an attractive opportunity to gain access to a high-quality property in an unrivalled location and to add value through redevelopment and innovation.
“We intend to create a new type of accommodation which is cutting edge in terms of place-making, while promoting the highest standards in environmental and social responsibility. Once completed, the Wellington block will be the hub of our new brand of flexible stay, all-suite hotels.”
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