Union Investment Acquires Wilde Aparthotel Development in London For £51.8m
Main Photo: The Public Area at the New Wilde Aparthotel
Date: September 2021
Name: Wilde Aparthotel by Staycity – Aldgate Tower Bridge
Location: Whitechapel, London, England, UK – Opening November 2021
Number of Keys: 156
Seller: Regal London
Buyer: Union Investment
German institutional investor Union Investment has announced the acquisition of the 156-room Wilde Aparthotel by Staycity hotel development in Whitechapel in East London from developer Regal London, for £51.8 million. The 14-storey aparthotel will be Staycity’s second Wilde-branded property in the city. The property will be composed of studios and one-bed apartments and will be operated by Staycity under a 30-year lease agreement. Staycity operates 7,000 apartments in Europe across two brands, Staycity Aparthotels and their premium brand, Wilde Aparthotels by Staycity. The project is scheduled to be completed in November 2021, when the property opens.
Union Investment acquired the aparthotel through it’s Unilmmo Deutschland Fund.
Regal London has successfully switched strategy for its Commercial Road development, opting to bring the site forward for a hotel development leased to serviced apart-hotel provider Staycity, in April 2019.
The hotel was a first for Regal London, which has a mainly mixed-use portfolio in the capital. The scheme has been designed by Dexter Moren Associates and spans 68,795 sq ft.
It will be operated by Staycity, through its Wilde brand, and will be the second Wilde hotel in London, following its debut on the Strand in March 2018.
Simon De Friend, joint chief executive of Regal London, said: “Wilde is the latest chapter in Whitechapel’s transformation, and as Regal London’s first purely leisure project it signals a milestone in the company’s strategy to pursue more hotel-led developments in the capital.”
Regal London acquired the site in mid-2016 for £6.9m. The developer initially sought to deliver a resi-led scheme of 164 homes in a 23-storey tower, but switched to a more viable office option as commercial values in the area soared.
In 2017, Tower Hamlets approved Regal’s plans for a downsized 11-storey tower with 50,000 sq ft of offices. An increase in hotel demand in the area then led Regal to pivot again to meet the local requirements.
De Friend added: “Tower Hamlets’ vision for Whitechapel, alongside the pending arrival of Crossrail, has spurred regeneration along Commercial Road. New residential and commercial offerings are continuing to emerge, attracted by the proximity to the City and Old Street, as well as the thriving arts and culture scene.
“Staycity’s second Wilde offering is set to become a valuable asset for local professionals, the residents of East London and hotel guests alike.”
Price: £51.8m
Price per Key: £332,000
THPT Comment: Cool deal for Regal London, and depending on build costs, not a bad profit over five years. Staycity ploughing ahead with this location in London’s Whitechapel – Aldgate area – it’s 16th location in Europe.
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