Strategic Mixed-Use Acquisition Highlights Investment Opportunities Amid Market Shifts
ActivumSG, representing ActivumSG Fund VII, in partnership with Global Hospitality Investment Group, has recently acquired Sutton Point, a mixed-use, hotel-led development in Greater London, for approximately €25 million. This strategic acquisition underlines ActivumSG’s confidence in the enduring investment potential within a fluctuating market. With stabilizing interest rates and inflation easing, ActivumSG sees promising opportunities to capitalize on market disruptions from recent years, leveraging its ready capital and expertise.
Following the acquisition, ActivumSG promptly sold off the non-hospitality portions of the property, including residential, retail, and freehold interests, in multiple back-to-back transactions. This strategic move de-risked the acquisition, allowing ActivumSG to retain and focus on the two hotels on site: a 99-room Ibis hotel and a 59-room Adagio aparthotel. Supported by a competitive senior loan from Leumi UK, ActivumSG aims to add significant value to these hospitality assets by drawing on its extensive experience in the hotel sector.
Sutton Point’s prime location near Sutton train station offers quick access to central London in under 30 minutes, making it a popular choice among local businesses, students, and leisure travelers. Completed in 2019/2020, the site boasts BREEAM Excellent ratings and impressive energy performance certifications, with the Adagio hotel achieving an EPC rating of ‘A’ and the Ibis hotel a ‘B’. This acquisition not only enhances ActivumSG’s portfolio but also positions it well to optimize returns through a well-targeted hospitality investment strategy.
