Rockwell, a London-focussed mixed-use property developer with a track record of high-quality development projects, has today announced the completion of a £106m investment deal with Aviva Investors to fund the delivery of a 400-bed Premier Inn hotel adjacent to Westferry DLR station.
Aviva Investors, the global asset management business of Aviva plc, has acquired the freehold interest of the site through its Lime Property Fund. Whitbread, Premier Inn’s parent company and the UK’s largest hospitality company, will take a 30-year lease of the hotel and restaurant, which will become the brand’s largest hotel in central London.
The 30-storey development, designed by architects SimpsonHaugh, will provide a gateway to Canary Wharf and is scheduled for completion in early 2022. In addition to a hotel, which will create hundreds of jobs, Rockwell will also deliver 66 new homes of which 35% will be affordable.
Donal Mulryan, Founder of Rockwell commented, “This is a landmark development and we are delighted to complete the £106m transaction with Aviva Investors. It’s been a pleasure to work with both Whitbread and Aviva to realise the delivery of this fantastic scheme, which will have a meaningful legacy for the surrounding area. This is an excellent template for bringing forward similarly high-quality developments in the future.”
Kris McPhail, Fund Manager, Aviva Investors, said: “We are pleased to participate in this scheme with Rockwell and be part of the rejuvenation of the existing site. The transaction provides our investors with an attractive 30-year inflation linked income stream from a market leading UK corporate, underpinned by strong real estate with excellent transport links. These are exactly the type of investments we target for the Lime Property Fund.”
This significant £106m investment deal was facilitated by CBRE who acted as the agents on Rockwell’s behalf. Commenting on the deal, Lewis Corby, Director at CBRE said: “We received strong investment demand, principally from institutional buyers. In the low interest environment, investors continue to be attracted to secure long dated, asset backed income. With 400 bedrooms, it is set to become the largest Premier Inn hotel in Central London.”
Avison Young acted on behalf of Aviva Investors.