UBS Asset Management Real Estate and Private Markets (UBS-AM REPM) is to provide equity funding for the development of a new hotel and office asset in central London.
The transaction is formed as a joint venture, with UBS-AM REPM providing funding alongside development partners BSW Land and Property and the Pickstock Group. Once completed the property will have a value of more than £100m.
The 23-storey building will include 18 floors of dedicated hotel space, above c.25,000 sq. ft. of office space.
The development is underpinned by a 30-year lease to hotel operator Motel One. The office space at the site aims to facilitate new hybrid working models, and plans to achieve ‘Excellent’ BREEAM certification.
The asset, which will be owned fully by UBS, is situated near to both the City of London financial district and Shoreditch.
UBS-AM REPM was advised on the transaction by Savills (occupational) and JLL (debt).
What They Said
Gijsbert van Riemsdijk, head of investment management, EMEA ex DACH at UBS-AM REPM, said: “The development of 39 East Road presents an exciting opportunity for our clients. The asset is expected to provide attractive risk-adjusted returns driven by the 30-year pre-lease in place to a strong hotel operator, which accounts for approximately 70% of the end value of the scheme. We look forward to managing the development of the site in the coming years alongside our partners, with its location and profile aligning well with our positive outlook for the Central London market.”