Aviva Investors

£106m hotel development site in east London acquired

Aviva Investors has completed the purchase of a £106m hotel development site in the Docklands, east London.

The global asset management business acquired the freehold interest of the site through its Lime Property Fund.

Whitbread — the parent company of Premier Inn — will take a 35-year lease on the hotel at an initial rent of £4.4m per annum, subject to five-yearly rent reviews to annual increases in CPI.

The Premier Inn hotel will comprise 30 storeys, with 400 beds and a restaurant.

Designed by architects SimpsonHaugh, the hotel will be located within close proximity to Canary Wharf.

The site will be developed by Rockwell and is scheduled to be completed by early 2022.

“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,” said Kris McPhail, fund manager at Aviva Investors.

“These are exactly the type of investments we target for the Lime Property Fund.”

Donal Mulryan, founder of Rockwell, added: “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.”

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