Acting on behalf of its Managed Property Fund, LGIM Real Assets has acquired Yotel London Clerkenwell for £70m from administrators James Cowper Kreston.
The hotel at 96-100 Clerkenwell Road will continue to be occupied by Yotel under a long-term management agreement.
Yotel London Clerkenwell is Yotel’s first London hotel and comprises 212 cabins, a restaurant, a co-working space with food services, a gym and a snack bar.
As well as the hotel, the property offers 3,000 sq ft of retail and five apartments covering 5,000 sq ft. The building has BREEAM ‘Excellent’ and EPC ‘A’ ratings.
“We are pleased to have concluded a timely sale of the hotel following our appointment of administrators in December,” said Paul Davies, partner at James Cowper Kreston.
“There remains significant interest in the hotel sector for well-located and innovative hospitality assets such as Yotel London Clerkenwell.”
Rob Codling, senior fund manager for LGIM Real Assets, added: “This is the fund’s first operational hotel acquisition, seizing a rare opportunity to acquire the hotel out of administration.”
The Yotel brand comprises 15 hotels worldwide in locations such as New York, Singapore and San Francisco. The group is set to open hotels in Glasgow, Porto and Miami later this year.
Constantine Real Estate and Gerald Eve advised L&G, while Knight Frank acted for James Cowper Kreston.