Hospitality group Whitbread Plc has acquired the New London House office building in the City of London for £56.5 million and aims to convert it into a hotel.
The seller of the 89,722 square foot net internal area office, retail and restaurant building was clients of Orchard Street Investment Management.
The 1970s building is by Fenchurch Street station in the heart of London’s financial district and has a podium and tower.
Plans to repurpose and extend New London House
Whitbread intends to seek planning consent from the City of London Corporation to repurpose and extend the current building into a hotel-led, mixed-use development with a mix of complementary uses on Crutched Friars and London Street together with new public spaces.
Jonathan Langdon, Senior Acquisition Manager at Whitbread, says, “The City of London’s appeal as a business and leisure destination continues to underwrite our investments in new hotel developments in the Square Mile. New London House presents an excellent opportunity to expand our network in the City and deliver our high-quality, great value hotel bedrooms in a location with the transport connections and proximity to business and leisure demand drivers that our customers expect.”
Whitbread has more than 25 years’ experience converting former office buildings into successful Premier Inn and hub by Premier Inn hotels with two such developments in the City of London currently under construction at Farringdon and Moorgate. The intention at New London House is to retain as much of the existing structure as possible.
The New London House acquisition is part of Whitbread’s strategy of targeting office buildings which no longer meet the requirements of occupiers and investors and offer the opportunity to repurpose into hotels.
Structural shift in office market
Mark Anderson, Managing Director for Property and International at Whitbread, says, “We are seeing a structural shift in the London office market presenting opportunities to acquire office buildings that are no longer fit for occupier and investor purposes and to reposition and refurbish them into successful hotels. Our strong balance sheet, plentiful liquidity, and ability to buy and develop freehold property, which is rare in our sector, leaves Whitbread very well-placed to take advantage of this structural shift.
“We have a strong track record of using innovative design and development to grow our hotel network in high value locations like Central London and in accordance with Whitbread’s commitments to becoming a net zero business by 2050.
“We are looking forward to working collaboratively with the City of London to repurpose New London House and create a landmark new hotel-led development in a superb location adjoining Fenchurch Street station.”
Frame Real Estate Partners advised Whitbread PLC . Cushman & Wakefield advised Orchard Street Investment Management.
The image is credit of Orchard Street Investment Management.
