LaSalle Investment Management has funded the £50m development of a 189-bedroom Premier Inn hotel in Hammersmith, W6.
The site, 229-243 Shepherds Bush Road, was acquired on behalf of a separate account client from BMW (UK) Trustees. BMW is managed by Legal & General Investment Management, which was retained as the development manager.
Robin James, head of transactions UK & Ireland at LaSalle, said: “This transaction is an excellent example of the sort of high-quality, securely let investment that fits perfectly into our strategy. We will continue to increase our exposure to sustainable, long-income assets with excellent transport links, that provide stable returns for our clients.”
The scheme comprises a new Premier Inn hotel, a Bar & Block restaurant and a Costa Pronto, all on long leases with CPI-linked rent reviews. The scheme provides Premier Inn with the first of two new hotels in central Hammersmith, a location it has been targeting for more than 10 years.
Gerald Eve represented LaSalle; JLL acted on behalf of LGIM.
Richard Lines, partner at Gerald Eve, said: “While this was a pre-pandemic negotiated deal, we are pleased to see that investor demand for London hotels is stronger than ever with pricing having held up well through the pandemic.
“Opportunities for well-let, index-linked long leases have become increasingly hard to come by, making it particularly pleasing to have secured this funding in what remains a very competitive environment.
“This scheme not only gives our client good, long-term income and exposure to the hotel sector, but also provides Premier Inn with a new site in one of its most sought-after locations.”
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