Capital and Counties Properties has announced the exchange of contracts to sell the Wellington block to The Portfolio Club for £76.5 million before costs. This is in line with the property valuation as at the 30th of June 2020.
A joint venture between APG and London Central Portfolio, The Portfolio Club was 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 of six separate properties. It has recently received planning consent to develop a 146-room hotel with retail and restaurant space. The new hotel development will be another major addition to Covent Garden which has established itself as a leading global destination. Vacant possession of the property has been secured over most of the site and the ERV of the properties as at 30th of June 2020 was £4.2 million.
“We are pleased to introduce The Portfolio Club and APG to the estate as innovative owner operators to redevelop the Wellington block into their contemporary hotel which will further contribute to Covent Garden’s position as a world class destination” comments Ian Hawksworth, Chief Executive of Capco.
Naomi Heaton, Chief Executive of The Portfolio Club, said: “We are delighted to have secured the Wellington block, a unique combination of architecturally beautiful buildings. Covent Garden, under Capco’s stewardship is an increasingly thriving and sought-after location with huge appeal to both the domestic and international market. This will be a cornerstone of our new lifestyle brand of Residents’ Clubs to be rolled out in prime central London neighborhoods and internationally, following the acquisition last year of the Harrington Hall Hotel in South Kensington by the joint venture partnership between LCP and APG.”
Robert-Jan Foortse, Head of European Property Investments at APG, said: “APG is delighted to further broaden The Portfolio Club investment programme with the acquisition of the Wellington block in Covent Garden. 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. 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.”
The Wellington block comprises 25-31 Wellington Street, 23 Wellington Street, 15 Exeter Street, 12 & 14 Burleigh Street and Burleigh House, currently providing approximately 66,000 square feet of lettable space increasing to over 100,000 square feet following completion of the consented hotel.