Prima Asset Management, the Singapore-based private equity real estate company, has acquired a freehold hotel in London’s Paddington submarket. The acquisition was made through Prima’s VCC Investment Fund, managed by First Degree Global Asset Management.
Other terms of the acquisition were not disclosed.
In partnership with London-based hotel operator and developer, Capilon Group, and financed by OakNorth Bank, the Victorian-era hotel will undergo extensive renovations, which will convert the property to a boutique upper-upscale hotel. The key count will also be increased, from the existing 68 rooms to more than 80 rooms.
The primary focus of the renovation will be to preserve the building’s original Georgian architecture and retain the unique architectural features. The hotel will be managed by Capilon Group.
“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 Ben Hall, co-founder and CEO of Prima Asset Management.
The hotel, which is located close to Hyde Park, was sold by Colliers.
Spanning 26,000 square feet, the hotel originally consisted of two family homes and was converted into a hotel in the 1960s, a news report said, adding that the hotel maintained its original 1840s façade. The reimagined hotel is slated to open later this year, the report added.
With London recording the second highest international tourism arrivals in 2023, Prima said it was confident in the long-term prospects the city has to offer. The city continues to be an attractive and robust investment destination, said Prima’s Co-Founder and Partner Birbal Singh Bajaj.
“This investment resonates with us personally as it reminds us of our family’s continued interest and investments in the Singapore Shophouse market,” Bajaj said.
Backed by Baksh Capital, Prima specializes in identifying, structuring and managing real estate investments with a special emphasis on delivering risk-adjusted returns across market cycles.