DTZ Investors has acquired the freehold of 120–134 Tottenham Court Road, 48–50 Grafton Way and 5 Warren Street in London’s West End for £58m.
The one-acre site comprises approximately 174,575 sq ft of hotel and retail accommodation, anchored by a 330-room hotel let on a long lease to Grafton Opco, trading as Radisson Blu, London Euston Square.
The lease is geared to a percentage of ERV and is subject to fixed five-yearly uplifts and the tenant is currently investing around £7.50m in a phased refurbishment.
The circa 26,365 sq ft of retail accommodation is spread across 12 units and is let to a diverse mix of occupiers including Tesco, Boots, McDonald’s, Starbucks, Rosa’s Thai and Wasabi.
DTZ Investors said the acquisition offered significant reversionary potential through the fixed rental uplifts from the hotel lease and future market reviews linked to open market value.
Anthony Gibby, senior director at DTZ Investors, said: “This acquisition provides long-term, inflation-linked income from a prime West End location. The combination of a landmark hotel and resilient high-street retail offers both secure income and asset management potential, aligning with our strategic objectives.”
DTZ Investors was advised by RX London, Savills and Forge. The vendor was advised by Knight Frank.
