UK: The Portfolio Club (TPC), a joint venture between APG and London Central Portfolio, has acquired the Wellington block from Capital & Counties Properties PLC (Capco) for £76.5 million.
The Wellington block is a freehold island site on the south east corner of Covent Garden. It comprises six separate properties and has received planning permission to develop a 146-room hotel with retail and restaurant space.
The entire block provides approximately 66,000 square feet of lettable space, increasing to over 100,000 square feet following the completion of the consented hotel.
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 neighbourhoods 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, commented: “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.”
Ian Hawksworth, chief executive of Capco, added: “We are pleased to introduce TPC, LCP 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.”
The Portfolio Club launched last year with the intention of creating a new lifestyle hospitality brand in Central London locations. The plan is to roll out the Residents’ Clubs internationally, catering to business and leisure travellers.
APG is a pension provider in the Netherlands. It manages approximately €524 billion (as of June 2020) in pension assets for the sectors of education, government, construction, cleaning, housing associations, energy and utility companies, sheltered employment organisations, and medical specialists.
London Central Portfolio is a real estate investment advisory firm. Its services include asset identification, project management, interior design and ongoing operational functions to optimise occupancy.
Capital & Counties Properties PLC is a property investment company in Central London. Capco’s landmark estate in Covent Garden was valued at £2.2 billion (as at 30 June 2020), and owns a 26.3 per cent shareholding in Shaftesbury PLC.
