Aviva Investors’ Lime Property Fund has bought a £106m hotel development site near Canary Wharf.
The asset management arm of Aviva has acquired the freehold interest in the site next to Westferry DLR station, where developer Rockwell will build a 30-storey Premier Inn Hotel.
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Whitbread, the owner of Premier Inn, will take a 35-year lease on the 400-room hotel and restaurant at an initial rent of £4.4m per year when it is completed in early 2022.
Aviva Investors fund manager Kris McPhail said: “We are pleased to participate in this scheme with Rockwell and play a part in rejuvenating the site.
“The transaction provides our investors with an attractive 35-year inflation linked income stream from a market-leading UK corporate, underpinned by strong real estate with excellent transport links.
“These are exactly the type of investments we target for the Lime Property Fund.”
The development has been designed by Simpson Haugh, and will include communal gardens to provide additional open public space.
Rockwell funder Donal Mulryan added: “We are delighted to complete the £106m transaction with Aviva Investors, for the exceptional hotel-led scheme positioned in a prime location adjacent to Westferry DLR station.
“This notable acquisition further demonstrates our proven track-record and supports our ambitious plans for the London hotel sector with the creation of more than 2,500 hotel rooms. In partnership with Whitbread, we are proud to deliver a landmark hotel that stands the test of time.”