LGIM Real Assets has bought Yotel’s first central London hotel in Clerkenwell, EC1, from administrators in a £70m deal.
The site, which Yotel will continue to operate under a management contract, has 212 cabins, 3,000 sq ft of retail space and five apartment spaces which take up a combined 5,000 sq ft.
It was finished in May last year, and has been operating since August. However, James Cowper Kreston Administrators was appointed in December after Covid-19 restrictions were reintroduced in the UK.
Rob Codling, senior fund manager for LGIM Real Assets, said: “This is the fund’s first operational hotel acquisition, seizing a rare opportunity to acquire the hotel out of administration.
“The asset is located in a prime area of London, a short walk from Farringdon Station which with the opening of the Elizabeth Line (Crossrail) will make it one of the busiest stations in the UK, providing a fantastic opportunity to capitalise on the recovery of the London hotel market following the Covid pandemic.”
Yotel, a UK-based company, has a portfolio of 15 hotels globally including New York, Singapore, Istanbul Airport, San Francisco, Edinburgh and Amsterdam.
L&G was represented by Constantine Real Estate and Gerald Eve. Knight Frank acted for James Cowper Kreston.
Shaun Roy, head of hotels at Knight Frank, added: “This sale received significant traction and we had very strong interest from a wide variety of capital sources, which only goes to show the underlying strength and belief in the London hotel market and innovative brands such as Yotel.”
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