Schroder Real Estate has acquired the freehold of Sofitel Gatwick North Terminal on behalf of a joint venture between BAE Pension Funds, and Immobilien Europa Direkt, from the Arora Group for an undisclosed sum.
The Sofitel marks the 9th hotel transacted by Schroder Real Estate following the successful integration of specialist hotel investment management platform, Algonquin Management Partners, acquired in May 2018. The transaction takes hotel assets under management to 51 assets, c.10,000 bedrooms, and a value of £2bn.
Occupying a prime location with direct access into the airport terminal, the hotel comprises 518 bedrooms with 565 parking spaces, five food and beverage outlets, 11 meeting rooms and 5,000 sq ft of office accommodation.
The hotel will continue to be operated by the previous owner, Arora Hotels, under a lease agreement.
Ben Ward, BAE Pension Funds, said: “This investment provides an attractive combination of increasing occupier demand as the airport expands capacity, but with relatively few supply threats. Schroders’ deal structuring also worked particularly well for our risk averse investment strategy.”
Duncan Owen, global head of Schroder Real Estate, added: “We are delighted to enter into a JV with a compatible long term investor such as BAE Pension Funds. Acquiring the Sofitel London Gatwick hotel utilises Schroders’ expert hotels platform, supporting attractive returns for both investors.
“This prime location has the potential to deliver long term income within a sector that provides defensive qualities in conjunction with upside potential through active management.”