Planning consent recently received to develop a 146-room hotel with retail and restaurant space
The Portfolio Club (“TPC”) is pleased to announce that it has exchanged contracts to acquire the Wellington block from Capital & Counties Properties PLC (“Capco”) for £76.5 million.
The Portfolio Club, a joint venture between APG and London Central Portfolio (“LCP”) was launched last year to create a new lifestyle hospitality brand in prime central London locations. The Wellington block is a freehold island site located on the south east corner of Covent Garden comprising six separate properties and has recently received planning consent to develop a 146-room hotel with retail and restaurant space. The new hotel development will be another major addition to Covent Garden which is established as a leading global destination.
Naomi Heaton, Chief Executive of The Portfolio Club, said: "We are delighted to have secured the Wellington block, a unique combination of architecturally beautiful buildings. Covent Garden, under Capco’s stewardship is an increasingly thriving and sought after location with huge appeal to both the domestic and international market. This will be a cornerstone of our new lifestyle brand of Residents’ Clubs to be rolled out in prime central London neighbourhoods and internationally, following the acquisition last year of the Harrington Hall Hotel in South Kensington by the joint venture partnership between LCP and APG.”
Robert-Jan Foortse, Head of European Property Investments at APG, said: “APG is delighted to further broaden The Portfolio Club investment programme with the acquisition of the Wellington block in Covent Garden. This represents an attractive opportunity to gain access to a high quality property in an unrivalled location and to add value through redevelopment and innovation. We intend to create a new type of accommodation which is cutting edge in terms of place-making, whilst promoting the highest standards in environmental and social responsibility. Once completed, the Wellington block will be the hub of our new brand of flexible stay, all-suite hotels. This is a vision we share with our partner, LCP, who will be leading the project on our joint behalf.”
Ian Hawksworth, Chief Executive of Capco, said: “We are pleased to introduce TPC, LCP and APG to the estate as innovative owner operators to redevelop the Wellington block into their contemporary hotel which will further contribute to Covent Garden’s position as a world class destination.”
The Wellington block comprises 25-31 Wellington Street, 23 Wellington Street, 15 Exeter Street, 12 & 14 Burleigh Street and Burleigh House, currently providing approximately 66,000 square feet of lettable space increasing to over 100,000 square feet following completion of the consented hotel.
About The Portfolio Club
A joint venture partnership between APG, on behalf of its pension fund clients and London Central Portfolio (LCP), leading real estate investment advisory in Prime Central London. It will develop an all-suite, flexible stay brand of Residents’ Clubs in the very centre of London, with the intention to roll out internationally, catering for the aspirational business and leisure traveller. It will showcase the best in British design with a focus on sustainability and smart technologies and an emphasis on guest experience.
About APG Group NV
APG is the largest pension provider in the Netherlands; its approximately 3,000 employees provide executive consultancy, asset management, pension administration, pension communication and employer services. APG performs these services on behalf of (pension) funds and employers in the sectors of education, government, construction, cleaning and window cleaning, housing associations, energy and utility companies, sheltered employment organizations, and medical specialists. APG manages approximately €524 billion (June 2020) in pension assets for the pension funds in these sectors. APG works for approximately 22,000 employers, providing the pension for one in five families in the Netherlands (about 4.7 million participants). APG has offices in Heerlen, Amsterdam, Brussels, New York and Hong Kong.
About London Central Portfolio (LCP)
London Central Portfolio (LCP), leading real estate investment advisory, was established in 1989 by Naomi Heaton as the first full-service asset management house investing in the private rental sector (PRS) in prime central London. Its services include asset identification, project management, interior design and ongoing operational functions to optimise occupancy and proactively manage its assets. LCP specialises in meeting the accommodation needs of the mainstream visitor, who increasingly tend towards aspirational micro-style living with 24/7 access to service. Its real estate capabilities are underpinned by sophisticated financial modelling and robust corporate governance. www.londoncentralportfolio.com
About Capital & Counties Properties PLC
Capital & Counties Properties PLC is one of the largest listed property investment companies in central London and is a constituent of the FTSE-250 Index. Capco's landmark estate at Covent Garden was valued at £2.2 billion (as at 30 June 2020) where its ownership comprises over 1.2 million square feet of lettable space. Capco owns a 26.3 per cent shareholding in Shaftesbury PLC. The Company is listed on the London Stock Exchange and the Johannesburg Stock Exchange. www.capitalandcounties.com