Premier Inn-owner Whitbread has bought the freehold interest in New London House in the City of London from clients of Orchard Street Investment Management for £56.5 million.
The 89,722 sq ft NIA office, retail and restaurant building was developed in the 1970s and comprises a podium and tower structure, is located adjacent to Fenchurch Street station in the heart of London’s financial district.
Whitbread intends to seek planning consent from the City of London Corporation to repurpose and extend the current building into a hotel-led, mixed-use development with a mix of complementary uses on Crutched Friars and London Street together with new public spaces.
Whitbread was advised by Frame Real Estate Partners. Orchard Street Investment Management was advised by Cushman & Wakefield.
What they said
Mark Anderson, managing director for property and international at Whitbread, said: “We are seeing a structural shift in the London office market presenting opportunities to acquire office buildings that are no longer fit for occupier and investor purposes and to reposition and refurbish them into successful hotels. Our strong balance sheet, plentiful liquidity, and ability to buy and develop freehold property, which is rare in our sector, leaves Whitbread very well-placed to take advantage of this structural shift.
Richard Walters, partner at Orchard Street, said: “New London House has proven to be a successful long-term investment for Orchard Street. Having completed our business plan of maintaining income for our client whilst preparing the asset for repositioning, we are delighted to pass the baton to Whitbread for the next phase of the property’s economic life.”