LaSalle Investment Management has bought the Staycity Aparthotel in Deptford, SE8, from Galliard Homes for £9.5m.
The sale of the 93-bed hotel, which is let to Staycity on a 25-year index-linked lease, reflects a net initial yield of 7.1%.
The hotel is located next to Deptford Bridge DLR and covers 39,660 sq ft over two buildings, which form part of a larger private residential scheme owned by Galliard Homes.
John Yeend, director at LaSalle IM, said: “We are delighted to have secured this well-located property. The apart-hotel market is a rapidly growing sector, providing an attractive alternative to hotels for both business and leisure users. London in particular is undersupplied in this market.”
Staycity manages aparthotels across eight European cities including Dublin, Edinburgh and Paris. The company aims to expand its operations from 1,000 to 5,000 apartments under management in the next five years.
Galliard Homes was represented by Gerard Nolan. Conway Relf were advising agents to LaSalle.
Sophia.Furber@estatesgazette.com
