L&G acquires YOTEL London Clerkenwell for GBP70m
LGIM Real Assets, on behalf of its Managed Property Fund, has purchased YOTEL London Clerkenwell, 96-100 Clerkenwell Road, Farringdon, from James Cowper Kreston Administrators for GBP70 million.
YOTEL will continue to operate the property under a long-term management agreement. YOTEL London Clerkenwell is the YOTEL group’s first central London hotel and features 212 cabins, and Komyuniti, an all-day restaurant, bar and co-working space which offers street-food inspired sharing plates, craft beers and cocktails. The hotel also has two meeting rooms, a 24/7 gym and Grab+Go snack bar.
In addition to the hotel, the property comprises c3,000 sq ft of retail space and five apartments totalling c5,000 sq ft. The building was completed in May 2020 and the hotel has been trading since August 2020. The property has strong ESG credentials with a BREEAM Excellent and EPC A rating.
The transaction is one of the first central London hotel transactions since the onset of the Covid pandemic and the “lean luxury” offering is well placed to be at the forefront of the London hotel market recovery.
Rob Codling, Senior Fund Manager for LGIM Real Assets, says: “This is the Fund’s first operational hotel acquisition seizing a rare opportunity to acquire the hotel out of administration. The asset is located in a prime area of London, a short walk from Farringdon Station which with the opening of the Elizabeth Line (Crossrail) will make it one of the busiest stations in the UK, providing a fantastic opportunity to capitalise on the recovery of the London hotel market following the Covid pandemic.”
Paul Davies, Partner at James Cowper Kreston, comments: “We are pleased to have concluded a timely sale of the hotel following our appointment of Administrators in December. There remains significant interest in the hotel sector for well-located and innovative hospitality assets such as YOTEL London Clerkenwell.”
Shaun Roy, Partner and Head of Hotels at Knight Frank, says: “We are thrilled to have completed this landmark deal in unprecedented market circumstances with both the vendor and purchaser happy with a successful outcome. This sale received significant traction and we had very strong interest from a wide variety of capital sources, which only goes to show the underlying strength and belief in the London hotel market and innovative brands such as YOTEL.”
YOTEL is a UK based hotel group with a portfolio which currently comprises 15 hotels globally including New York, Singapore, Istanbul Airport, San Francisco, Edinburgh and Amsterdam. Hotels in Glasgow, Porto and Miami are due to open this year. YOTEL provides affordable luxury for guests with a hotel experience that encourages minimalistic design and clever use of technology, including check-in via the YOTEL App and the use of a SmartKey for a seamless guest experience.
L&G was represented by Constantine Real Estate and Gerald Eve. Knight Frank acted for James Cowper Kreston Administrators.