UK: Osprey Equity Partners has signed a deal to forward fund an £80 million aparthotel development in Aldgate.
The 178-unit scheme is being developed by Reef Estates and the
Sharma family. Osprey, backed by LJ Partnership, has bought the
site at 27 Commercial Road and will fund the development on behalf
of clients including Qatari investment bank QInvest.
Planning permission has been secured. Once completed, the 21-storey property will be operated by Go Native.
Simon Lee, co-founder of Osprey, said: "27 Commercial Road provides exposure to the London aparthotel sector which remains materially under supplied relative to other gateway cities and significantly undervalued in comparison to the student and PRS sectors."
Craig Cowie, head of real estate at QInvest, said: "We believe that the high margin/low cost operating model and early mover advantage in the embryonic London aparthotel sector should generate attractive income and capital returns, underpinned by an excellent City-fringe location."