UK property firm Capital & Counties (Capco) has exchanged contracts to sell the Wellington block, a hotel project in London’s Covent Garden, for £76.5 mln (€84 mln) before costs. The price is in line with the property valuation as at 30 June, the vendor said in a statement.
The buyer is the Portfolio Club, a joint venture between APG and London Central Portfolio (LCP) launched last year to create a new lifestyle hospitality brand in prime central London locations.
The Wellington block is a freehold island site located on the south east corner of Covent Garden comprising six separate properties and has recently received planning consent to develop a 146-room hotel with retail and restaurant space.
It comprises 25-31 Wellington Street, 23 Wellington Street, 15 Exeter Street, 12 & 14 Burleigh Street and Burleigh House, currently providing approximately 66,000 ft2 (6,130 m2) of lettable space increasing to over 100,000 ft2 following completion of the consented hotel.
‘This represents an attractive opportunity to gain access to a high quality property in an unrivalled location and to add value through redevelopment and innovation,’ commented Robert-Jan Foortse, head of European Property Investments at APG. ‘We intend to create a new type of accommodation which is cutting edge in terms of place-making, whilst promoting the highest standards in environmental and social responsibility. Once completed, the Wellington block will be the hub of our new brand of flexible stay, all-suite hotels. This is a vision we share with our partner, LCP, who will be leading the project on our joint behalf.’