The regeneration of London’s Paddington will take a further step forward with the development of a 620-room hotel and aparthotel complex.
The tenants of the scheme will be Premier Inn and Staycity Group, and it is expected to open by 2021.
M&G has acquired the long leasehold interest of the development site and will finance the construction of the hotel complex to be carried out by development consortium, Concierge 3 Limited (a joint venture partnership between The Pickstock Group, Staycity, and BSW Land & Property Ltd.).
The capital is provided by the £4.1 billion ($5.3 billion) M&G Secured Property Income Fund, which invests in U.K. real estate assets let on long-term leases, usually with rents that increase in line with inflation.
Under the terms of the deal, Whitbread plc, the owner of Premier Inn, and Staycity will each take 30-year leases on five yearly inflation-linked rent reviews, operating independently with 60 percent and 40 perc
