The former owner of South Place Hotel, an 80-bed boutique in London, has now submitted planning permission for a new site in Southwark to be developed into a 275-bed hotel.
Frogmore, the UK-based real estate investment manager, has been given a £14.4m loan from OakNorth to acquire the new site on Ufford Street, adjacent to the LeSoCo College.
The developer, which was first founded in 1995, currently owns assets such as The Notting Hill Gate Estate, Stratford Shopping Centre and Weston House in Holborn.
In 2012 Frogmore developed South Place Hotel, the 80-bed boutique hotel with restaurant, brasserie and private dining facilities which is let to D&D Restaurants.
Earlier this year in April, South Place Hotel was sold to Chinese investors.
Frogmore’s new site in Southwark is a 10 minute walk from both Waterloo and Southwark and in close proximity to popular attractions.
Whilst there are a number of hotel projects and schemes currently under construction in Southwark – Hilton’s Hampton, Marriott’s Autograph, and Park Plaza’s Art’otel – the area still has one of the lowest levels of hotel bedroom supply amongst key Central London boroughs.
Commenting on the deal, Jo Allen, chief executive of Frogmore, said: “Southwark has been experiencing a shortage in hotel room supply for several years. In Kensington and Chelsea, there are three times as many hotel rooms. In Westminster, there are more than seven times. Our hope is that we can secure planning permission to build a hotel here and help fill this gap with a new 275 bedroom hotel on the site.
“It was a pleasure working with OakNorth on this deal – we’re no strangers to securing debt finance for large-scale projects, but this experience was one of the simplest and most stress-free transactions we’ve concluded.”