South London hotel scheme offloaded for £21m

Private equity manager ActivumSG has acquired a hotel-led mixed-use development in Sutton, south London, for £21m from an Irish family office. The Sutton Point development comprises an Adagio aparthotel, Ibis hotel, 332 flats, a 330-desk serviced office, 11,000 sq ft grade-A office, gym and estate agency and 3,700 sq ft of retail. The site was developed in 2020 by CNM Estates. The buyers acquired the site for less than its replacement cost, followed by the immediate back-to-back disposal of the non-hospitality components to an unnamed buyer, keeping the hotels. The hotel acquisition was financed through a senior loan from Leumi UK. James de Lusignan, UK managing director of ActivumSG, said: “Sutton Point represented a unique opportunity to acquire a recently developed, high-quality asset at significantly below replacement cost. “The complexity of this transaction would have dissuaded many other buyers, but we identified significant unlocked potential through our collective skillset and local, in-country presence.” View socio-demographic data for Sutton >>