ActivumSG, on behalf of ActivumSG Fund VII, working with Global Hospitality Investment Group, today announced the acquisition of Sutton Point, a hotel-led mixed-use asset in Greater London, for c. €25m.
The transaction underscores ActivumSG's belief that, despite stabilising interest rates and easing inflation, there remain substantial opportunities for sophisticated investors to capitalize on the past two years of market dislocation. With capital ready to deploy, ActivumSG is well-positioned to take advantage of these strategic investment prospects.
Upon closing, the non-hospitality elements (residential, retail and freehold interest) of the scheme were successfully sold in multiple back-to-back disposals. This significantly de-risked the transaction and allowed for the retention of the two hotels (a 99-key Ibis hotel and a 59-key Adagio aparthotel), where ActivumSG will leverage its extensive expertise investing in hotels and hotel operators to enhance their value. The retained hospitality assets were financed with an attractively priced senior loan provided by Leumi UK, led by Leumi’s Relationship Director Steve Crosswell.
Sutton Point, near Sutton train station, offers central London access in under 30 minutes via Thameslink and Southern rail lines. It attracts demand from local businesses, students, and leisure groups. Developed in 2019/2020, the site features BREEAM Excellent ratings, with the Adagio hotel having an EPC ‘A’ and the Ibis hotel an EPC ‘B’.
James de Lusignan, UK Managing Director, ActivumSG, said: “Sutton Point represented a unique opportunity to acquire a recently developed, high-quality asset at significantly below replacement cost. The complexity of this transaction would have dissuaded many other buyers, but we identified significant unlocked potential through our collective skillset and local, in-country presence.”
Saul Goldstein, Founder and CEO, ActivumSG, said: “We kept our capital dry in anticipation that the market would soon present compelling opportunities where you could acquire fundamentally sound assets at attractive prices. This is one of them. The hotel-led aspect of the site was a big draw for us, as the hospitality sector has been one of our long-held conviction calls in Europe, and we are actively investigating a number of similar opportunities in the UK, which remains a core market for us.”
James Gibbs, Managing Director and Head of Europe, Global Hospitality Investment Group, said: “Sutton Point exemplifies our ability to collaborate with a market-leading private equity firm to source and execute on highly complex hospitality-led investments and is a prime example of a great asset with an impaired balance sheet. Immediate value was created through the back-to-back sales on the non-hospitality component whilst there remains significant additional upside to unlock via optimizing hotel operations.”
Image source - ActivumSG.
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