ActivumSG, working with Global Hospitality Investment Group, has acquired a mixed-use asset Sutton Point.
Located adjacent to Sutton train station in Greater London, the hotel-led asset which was originally developed in 2019 was purchased for £21 million.
Upon closing, the non-hospitality elements of the scheme were sold in multiple back-to-back disposals, with the two hotels - a 99-key Ibis hotel and a 59-key Adagio aparthotel – retained. The asset is labelled BREEAM Excellent, and the Adagio and Ibis hotels benefit from EPC ‘A’ and EPC ‘B’ ratings respectively.
Real estate private equity investment manager ActivumSG says it will leverage its expertise investing in hotels and hotel operators to enhance the value of the hotels. Other assets in ActivumSG’s portfolio include The Nobu Hotel Barcelona and The SLS Barcelona. The purchase of Sutton Point represents the company’s first-ever hospitality-focused direct real estate play in the UK.
The retained hospitality assets were financed with a priced senior loan provided by Leumi UK, led by Leumi’s relationship director Steve Crosswell.
What they said
James de Lusignan, UK managing director at ActivumSG said: “Sutton Point represented a unique opportunity to acquire a recently developed, high-quality asset at significantly below replacement cost. The complexity of this transaction would have dissuaded many other buyers, but we identified significant unlocked potential through our collective skillset and local, in-country presence.”
Saul Goldstein, founder & CEO of ActivumSG added: “The hotel-led aspect of the site was a big draw for us as the hospitality sector has been one of our long-held conviction calls in Europe, and we are actively investigating a number of similar opportunities in the UK which remains a core market for us.”
James Gibbs, managing director & head of Europe at Global Hospitality Investment Group added: “Sutton Point exemplifies our ability to collaborate with a market-leading private equity firm to source and execute on highly complex hospitality-led investments and is a prime example of a great asset with an impaired balance sheet. Immediate value was created through the back-to-back sales on the non-hospitality component whilst there remains significant additional upside to unlock via optimizing hotel operations.”