CBRE Global Investors has acquired the Park Plaza Waterloo hotel, SE1, in a club deal for its pension fund investors.
The PPHE Hotel Group has committed to a £160m sale and leaseback through Waterloo Hotel Holdings BV. The initial rent will be £5.6m pa.
The Park Plaza hotel, on Hercules Road, is a newly completed hotel with 494 bedrooms, restaurants, swimming pool, fitness centre, spa and business centre.
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. 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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