Singapore PE Firm Buys Central London Hotel for $51M Value-Add Project

A Singapore private equity firm has acquired a central London hotel for a refurbishment project with an expected end value of S$70 million ($51.7 million), as Asian investors continue to target hospitality assets in the British capital.

Prima Asset Management, a firm backed by Singapore family office Baksh Capital, acquired the former Victoria Garden Hotel from a seller identified as Property Investments (Development) Ltd, with financing provided by Britain’s OakNorth Bank. Financial details of the deal were not disclosed, with the 68-room property fashioned from two Victorian family homes in Paddington.

The asset will undergo refurbishment to increase its key count to over 80 rooms, Prima said Friday in a release. The design of the new four-star boutique hotel will focus on retaining the unique architecture of the building, which features modern construction techniques behind its 1840s-era facade.

“With our proven track record in identifying and structuring unique risk-adjusted real estate investment opportunities, the strategic acquisition of this prime property not only signifies our focus on the resilient London hotel market but also positions us in one of London’s most attractive growing sub-markets,” said Prima co-founder and CEO Ben Hall.

Blank-Canvas Opportunity

Prima secured its new trophy in partnership with Capilon Group, a London-based hotel operator and developer tapped to run the revamped property, which sits within a 15-minute walk of Hyde Park and was put on the market in 2021 for £20 million (now $25.3 million).

Measuring 26,000 square feet (2,415 square metres), Victoria Garden has been in continuous use as a hotel since the mid-1960s and contains a large dining room, bar and lounge, ground-floor lobby and reception, offices, catering-standard kitchen and additional staff and storage rooms, according to Colliers, which handled the sale.

The property at 100-102 Westbourne Terrace presented an opportunity to acquire a blank-canvas hotel asset near the main tourist destinations of central London and easily accessible to international travellers, said Colin Hall, director of London hotels agency at Colliers.

“The London market is definitely returning to upswing and we are seeing both international and domestic investment recognising the long-term strength of the capital’s hospitality market,” Hall said in a separate announcement.

Market Confidence

With Prima focused on developing a robust pipeline of opportunities across the UK, the Victoria Garden buy marks the firm’s commitment to the market via the VCC Investment Fund managed by First Degree Global Asset Management.

“With London recording the second highest international tourism arrivals globally in 2023, we are confident in the long-term prospects the city has to offer as it remains an attractive and robust investment destination,” said Birbal Singh Bajaj, co-founder and partner at Prima.

The firm’s transaction comes less than four months after Singapore-based Sun Venture made its first hospitality bet by acquiring the 280-key Hyatt Place London City East in Aldgate for less than £100 million.

In a deal announced last August, SGX-listed CapitaLand Ascott Trust purchased the 230-room Cavendish London hotel in the West End’s affluent Mayfair district for £116.3 million.