The Portfolio Club is to develop a new lifestyle hotel concept in central London after acquiring an expansive block in Covent Garden for £76.5m.
The Portfolio Club is a joint venture between pension fund APG and real estate investment advisory London Central Portfolio, which was launched last year to create the new hospitality brand in prime central London locations.
The deal to acquire the freehold island site Wellington block on the south east corner of Covent Garden from Capital & Counties Properties PLC, is the second step towards this ambition for The Portfolio Club.
Last year, the company acquired Harrington Hall Hotel in South Kensington.
The Wellington block in Covent Garden comprises six separate properties and has recently received planning consent to develop a 146-room hotel with retail and restaurant space.
The new hotel concept will aim to be a ‘new type of accommodation’ offering a ‘new brand of flexible stay, all-suite hotels’.
Naomi Heaton, chief executive of The Portfolio Club, said: “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, said: “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.”