The Portfolio Club, a joint venture between APG and London Central Portfolio exchanged contracts to acquire the Wellington block from Capital & Counties Properties for £76.5m.
The group recently received planning consent to develop a 146-room hotel with retail and restaurant space.
Naomi Heaton, CEO, The Portfolio Club, said: "We are delighted to have secured the Wellington block, a unique combination of architecturally beautiful buildings. Covent Garden, under Capco’s stewardship is an increasingly thriving and sought after location with huge appeal to both the domestic and international market. This will be a cornerstone of our new lifestyle brand of Residents’ Clubs to be rolled out in prime central London neighbourhoods and internationally, following the acquisition last year of the Harrington Hall Hotel in South Kensington by the joint venture partnership between LCP and APG.”
Robert-Jan Foortse, head of European property investments, APG, said: “APG is delighted to further broaden The Portfolio Club investment programme with the acquisition of the Wellington block in Covent Garden. This represents an attractive opportunity to gain access to a high quality property in an unrivalled location and to add value through redevelopment and innovation. We intend to create a new type of accommodation which is cutting edge in terms of place-making, whilst promoting the highest standards in environmental and social responsibility. Once completed, the Wellington block will be the hub of our new brand of flexible stay, all-suite hotels. This is a vision we share with our partner, LCP, who will be leading the project on our joint behalf.”