Union Hanover and EquityBridge Asset Management have appointed Colliers International and JLL to forward sell a brace of London Adagio aparthotel properties for more than £110m.
The two developments will open two years apart. Accor-owned Adagio will open the £70m 217 apartment property on Whitechapel Road, London in 2016 following the conversion of a major office building, Black Lion House. Launching in 2018, the £40m 137 apartment Adagio London Stratford on Celebration Avenue in East London’s Stratford district continues the Olympic legacy and the development of the Olympic Park site and ‘East Village’.
Aparthotels Adagio are aimed primarily at mid and long-stay visitors and provides hotel services and fully-furnished studios and one and two-bedroom apartments, complete with kitchens and bathrooms, to provide high quality self-catering accommodation for extended stays based on attractive tiered pricing.
The two properties are European market leader, Aparthotels Adagio’s first properties in London and are central to the development of the brand in Europe and globally.
Union Hanover managing director Eric Jafari said: “We have already had a number of off-market approaches by investors for the properties so we decided to capitalise on the markets appetite for this kind of product. We will recycle the proceeds into our development pipeline and will seek to acquire other properties on long leases for our own aparthotel brand Urban Villa”.
Adagio’s innovative aparthotel concept has been successfully rolled-out across Europe and is now developing across the UK, following the UK launch of Adagio in Liverpool last year and the planned development in Edinburgh announced last month and Birmingham, due to launch in 2015.
Will Duffey senior vice president at JLL Hotels said: “There is a dearth of high quality well let London hotel product currently on the market. Investors are particularly attracted to the strong returns expected to be delivered by the burgeoning extended stay market in London and Europe.”
Tim Meakes, Director of National Investment at Colliers International said: “These are very well located hotels on long leases with fixed uplifts. The edge of the City and Stratford both have seen lots of regeneration and present strong growth stories, and both very well served by excellent transport links.”