Land Securities has sold Turnstile House on London’s High Holborn for £43.5m to serviced residential operator The Ascott Group.
The 83,400 sq ft building is currently leased to The Ascott Group, which operates it as a 192-bed serviced residence, trading as Citadines London Holborn-Covent Garden. The building also includes three retail units.
Richard Linnell, head of investment management for Land Securities’ London Portfolio, said: ‘Holborn has become a vibrant district and this building’s location – on the doorstep of Covent Garden and with great public transport links – has made it a very attractive proposition as a hotel. It has produced good returns for us since its conversion to an apart-hotel, but it no longer fits our main focus of activity.’
Gerald Lee, Ascott’s deputy CEO (operations), said: ‘Ascott is buying this property because of its great location and the strong growth potential for serviced residences in London.
‘The area has been attracting companies from the finance, media and banking sectors, and has an increasing number of office and retail developments.
‘With the shortage of international class serviced residences to cater to the strong demand, we expect our property to continue to do well.’
The sale proceeds will be recycled into the Land Securities Group business.
Land Securities was advised by Fineman Ross and The Ascott Group was unrepresented.