Starwood Capital has agreed a deal with NAMA to buy four “apart-hotels” and a residential development in London for £206m.
The deal for the assets previously managed by Think Apartments saw Irish bad bank NAMA’s debt paid back in full.
NAMA has been able to achieve strong outcomes on sales in recent times as the market has improved, whilst Starwood Capital has been steadily building its hotel and leisure presence in the UK over the past years, with an IPO thought to be a possible exit.
Apart-hotels are apartments that are run with a hotel-style booking system with a low service offering. The four operating assets totalling 461 units are on Bermondsey Street, Long Lane and Tower Bridge Road, all in Southwark, and Warwick Road, Earl’s Court. The residential project is also located in Bermondsey.
Administrators at Duff & Phelps were appointed to the five holding companies that own the assets in October 2013. In August last year the Palmer Capital-backed serviced apartment owner and operator Go Native was appointed to manage the properties.
Geoffrey Bouchier, managing director of Duff & Phelps, said: “The companies underwent a successful financial restructuring process which enabled the subsequent sale to Starwood Capital Group. We are pleased our efforts, in conjunction with the lawyers at DLA Piper, have resulted in the portfolio kept whole and continuing to trade, as well as all creditors being paid in full. Under their new ownership the properties and their respective operations are in a stronger position to carry their business into the future.”
Meanwhile, Starwood has bought The Town House Collection, which owns luxury hotels The Blythswood Square Hotel in Glasgow and The Bonham Hotel in Edinburgh. Over the past year two years the company has expanded its portfolio aggressively in the sector by acquiring the likes of De Vere Venues and Principal Hayley.