Aprirose Buys Soho Block for New Luxury Hotel
Date: March 2017
Location: 52-53 Poland Street, Soho, London, UK
Name: Z Hotel Tottenham Court Road – to open March 2018
No. of Keys: 110
Seller: In September 2014, Quadrum Global purchased this 20,500 sq. ft. mixed-use office and retail property in Soho, Central London, from British Land in a JV with Amazon Property for £26m, with the intention of redeveloping the site into a residential scheme.
Due to its prime location but unmodernised condition, the site presented as an opportunity with significant value-add potential. Soho is a highly sought-after and vibrant area, well known for its theatres, restaurants, bars and cafes, and excellent transport links. Due to the building’s location, the option existed for several uses including residential, hotel and offices.
The retail space on the ground and lower ground floors was sold off simultaneous with acquisition, extracting value early and focusing redevelopment of the upper floors.
Planning permission for change of use from office to residential on the upper floors was obtained, which increased the massing and allowed for the development of 19 apartments.
The additional massing consisted of an additional floor and the cantilever of the building outwards, creating an increase of 3,484 square feet equating to a 25% increase which significantly adding value.
Considering all exit options, Quadrum entered negotiations with a hotel operator to purchase the building subject to the planning consent for hotel use. The offer for the site represented one of the highest prices achieved on a per square foot basis on a like-for-like building in the local Soho area.
Quadrum exchanged contracts in April 2016 to sell the building subject to hotel use being granted. The sale was completed February 2017 as soon as planning was achieved.
Buyer: Aprirose, which it plans to convert into a luxury hotel and to be managed by Z Hotels. Recent buyers of Q Hotels
Price: £30m (Building only). Refit at Z Hotels cost
Price per Key: £272,727 (land only)
THPT Comment: Z Hotels have done really great with their very stylish spin on the traditional boutique hotel…Z is headed up by Bev King, who now have 11 hotels – 7 in London and Liverpool, Glasgow & Bath (Opening 2018). Looks like they will be neighbours to Shiva Hotels are are due to open their 150 key hotel next door at 47-50 Poland Street
First Seen: Quadrum website and Co-Star