LGIM Real Assets has purchased YOTEL London Clerkenwell, 96-100 Clerkenwell Road, Farringdon from James Cowper Kreston Administrators for €81m (£70m). YOTEL will continue to operate the property under a long-term management agreement. 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 that 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.3,000ft² of retail space and five apartments totalling c.5,000ft². 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.
Rob Codling, Senior Fund Manager for LGIM Real Assets, said: “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, commented: “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.”