German Investor Buys UK’s Largest Aparthotel for £80m

Main Photo: The Ducie Street Warehouse

Date: November 2019

Location: Manchester, England, UK

Name: Ducie Street Warehouse

No. of Keys: 158 one and two bedroom suites and 8 penthouses

Seller: US private equity firm Ares Investment and local developer Capital & Centric

Buyer: German based Deka Immoblien. Ducie Street Warehouse in Manchester, reputed to be the UK’s largest aparthotel, has been sold to Deka Immoblien for £80m.

The Grade two-listed redbrick Victorian warehouse near Piccadilly station was recently refurbished and expanded by Ares and Capital & Centric for a reported £25m, after they bought it from Goldman Sachs and Greystar for £25m in 2016.

The project involved restoring features like the building’s brick-vaulted ceilings and iron columns.

The property, still operated by Native, which is also owned by Ares Investment Management, features various F&B outlets, private meeting and dining rooms and an outdoor terrace, in addition to 158 one- and two-bedroom suites and eight penthouses.

Price: £80m

Price per Key: £481,928

THPT Comment: Not bad economics…£30m profit after three years. Deka is a giant investor in 48 hotels in 25+ countries, although little in the UK…just three – The Clayton Birmingham, Malmaison London and Radisson Blu Edinburgh.

First Seen: The Caterer

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