Aviva Investors has bought an ‘aparthotel’ scheme in central London as it moves to expand its long income real asset range.
The property comprises a 22-storey tower that will provide around 190 apartments as well as facilities such as a gym, café, private restaurant, and more.
Bought for £150 million (€167.2 million) by the firm’s Lime Property Fund, the asset will be operated under ‘The Gate’ brand. It is expected to be ready for guests at the start of 2020.
The fund manager has also reached an agreement with the local council to lease the asset once the fit-out process has been completed. The freehold will transfer to the London Borough of Barking and Dagenham for a nominal lease at expiry of the lease.
Councillor Cameron Geddes, cabinet member for regeneration and social housing for the council, welcomed the investment
“It’s no secret that councils across the country are suffering from cuts to the level of funding they get from government,” he said.
“This investment is much-needed and supports our ambition to use opportunities for growth and investment, while maintaining services for our most vulnerable residents.”
Aviva Investors recently completed two lettings at a west London industrial park, filling the site less than one year after completion.
It also acquired Unilever’s future headquarters in Germany earlier this year.
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