UK-based hospitality group Whitbread has bought a freehold interest in New London House in England from clients of Orchard Street Investment Management in a £56.5m deal.
It plans to expand and repurpose the current building into a hotel-led, mixed-use development with modern uses on Crutched Friars and London Street, along with new public spaces.
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The hotel group will now look for planning consent from the City of London Corporation for the conversion.
Whitbread senior acquisition manager Jonathan Langdon said: “The City of London’s appeal as a business and leisure destination continues to underwrite our investments in new hotel developments in the Square Mile.
“New London House presents an excellent opportunity to expand our network in the city and deliver our high-quality, great-value hotel bedrooms in a location with the transport connections and proximity to business and leisure demand drivers that our customers expect.”
Whitbread managing director for property and international Mark Anderson said: “We are looking forward to working collaboratively with the City of London to repurpose New London House and create a landmark new hotel-led development in a superb location adjoining Fenchurch Street station.”
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By GlobalDataWhitbread received advice from Frame Real Estate Partners for the transaction while Cushman & Wakefield advised Orchard Street Investment Management.
Located at 6 London Street in London, the 89,722ft² NIA office, retail and restaurant building was developed in the 1970s.
The property consists of a podium and tower structure and is situated next to Fenchurch Street station at the centre of London’s financial district.
Whitbread has 25 years of experience in repurposing former office buildings into Premier Inn buildings and hubs for Premier Inn hotels.
Currently, it has two office-to-hotel projects for the hub by the Premier Inn brand under development at Farringdon and Moorgate in London.
Whitbread targets office buildings that no longer meet the requirements of occupiers and investors and transforms them into hotels, with the recent acquisition being in line with the group’s strategy.
