PPHE Hotel Group has agreed a deal to acquire a 13,000 sq m (circa 140,000 sq ft) mixed-use development site near Tower Bridge in London for £17.5m.
The site, which has planning permission, will house a 182-bed Radisson RED lifestyle hotel featuring a restaurant, bar and gym and 41,000 sq ft of office space.
PPHE is targeting a BREEAM Excellent rating for the development, which marks the group’s first foray east of the City of London.
PPHE Hotel Group’s European Hospitality Real Estate Fund will fund the initial acquisition with the group securing construction finance for the development in line with past projects once the acquisition has completed and the development has been approved.
Greg Hegarty, co-CEO of PPHE Hotel Group, said: “This site will be a great addition to our development pipeline as we continue to extend our portfolio and presence in the London market. It is an exciting project which leverages our ‘buy, build, operate’ business model and expertise as well as our multi-brand and multi-market segment strategy. We look forward to bringing Radisson RED to central London, following our recent Radisson RED openings in Berlin and Belgrade.”
James Andrew International represented PPHE Hotel Group on the deal.
