LGIM Real Assets, on behalf of its Managed Property Fund, has purchased YOTEL London Clerkenwell, 96-100 Clerkenwell Road, Farringdon from James Cowper Kreston Administrators for £70 million. YOTEL will continue to operate the property under a long-term management agreement
20 Apr 2021
YOTEL London Clerkenwell is the YOTEL group’s first central London hotel and features 212 cabins, and Komyuniti, an all-day restaurant, bar and co-working space which offers street-food inspired sharing plates, craft beers and cocktails. The hotel also has two meeting rooms, a 24/7 gym and Grab+Go snack bar.
In addition to the hotel, the property comprises c.3,000 sq ft of retail space and five apartments totalling c.5,000 sq ft. The building was completed in May 2020 and the hotel has been trading since August 2020. The property has strong ESG credentials with a BREEAM Excellent and EPC A rating.
The transaction is one of the first central London hotel transactions since the onset of the COVID pandemic and the “lean luxury” offering is well placed to be at the forefront of the London hotel market recovery.
YOTEL is a UK based hotel group with a portfolio which currently comprises 15 hotels globally including New York, Singapore, Istanbul Airport, San Francisco, Edinburgh and Amsterdam. Hotels in Glasgow, Porto and Miami are due to open this year.
YOTEL provides affordable luxury for guests with a hotel experience that encourages minimalistic design and clever use of technology, including check-in via the YOTEL App and the use of a SmartKey for a seamless guest experience.
L&G was represented by Constantine Real Estate and Gerald Eve. Knight Frank acted for James Cowper Kreston Administrators.
Rob Codling, Senior Fund Manager for LGIM Real Assets: "This is the Fund’s first operational hotel acquisition seizing a rare opportunity to acquire the hotel out of administration. The asset is located in a prime area of London, a short walk from Farringdon Station which with the opening of the Elizabeth Line (Crossrail) will make it one of the busiest stations in the UK, providing a fantastic opportunity to capitalise on the recovery of the London hotel market following the Covid pandemic."
Paul Davies, Partner at James Cowper Kreston: "We are pleased to have concluded a timely sale of the hotel following our appointment of Administrators in December. There remains significant interest in the hotel sector for well-located and innovative hospitality assets such as YOTEL London Clerkenwell."
Shaun Roy, Partner and Head of Hotels at Knight Frank: "We are thrilled to have completed this landmark deal in unprecedented market circumstances with both the vendor and purchaser happy with a successful outcome. This sale received significant traction and we had very strong interest from a wide variety of capital sources, which only goes to show the underlying strength and belief in the London hotel market and innovative brands such as YOTEL."
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
*at 31 Dec 2022
Legal & General Investment Management
Legal & General Investment Management is one of Europe’s largest asset managers and a major global investor, with total assets under management of £1.2 trillion1 ($1.4tn, €1.4tn, CHF 1.4tn). We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
For more than 50 years, we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property, and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
*at 31 Dec 2022
1LGIM internal data as at 31 December 2022. These figures include assets managed by LGIMA, an SEC Registered Investment Advisor. Data includes derivative positions.