UBS Asset Management has formed a joint venture to build and buy a £100m hotel in Hoxton.
UBS’s Real Estate and Private Markets arm will provide equity funding for the development of 39 East Road, N1. The deal will see UBS form a joint venture alongside development partners BSW Land and Property and the Pickstock Group. UBS will own the asset once completed.
The 23-storey building will include 18 floors of dedicated hotel space, let on a 30-year lease to German low-budget chain Motel One, and more than 25,000 sq ft of office space.
The office space will facilitate new hybrid working models, and plans to achieve ‘Excellent’ BREEAM certification.
UBS-AM REPM’s Gijsbert van Riemsdijk said: “The development of 39 East Road presents an exciting opportunity for our clients. The asset is expected to provide attractive risk-adjusted returns driven by the 30-year prelease in place to a strong hotel operator, which accounts for approximately 70% of the end value of the scheme.
“We look forward to managing the development of the site in the coming years alongside our partners, with its location and profile aligning well with our positive outlook for the central London market.”
UBS-AM REPM was advised on the transaction by Savills and JLL.
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