Southwark Bridge Road hotel changes hands for £64 million

LaSalle Investment Management has acquired 53-61 Southwark Bridge Road from a Danish investor for £63.75 million.

The 80,000 sq ft building currently comprises 182 bedrooms and is occupied on an eleven-year lease by the four-star Novotel London City South hotel.

"This acquisition, which is in line with our strategy to invest in long-let, fixed or index-linked assets, is a great example of working directly with the vendor and completing a transaction within a short period of time," said Shaun Reed, fund manager at LaSalle Investment Management.

"Furthermore, the property's lease had eleven years remaining on it, but we are able to acquire shorter leases for properties in core locations and with strong underlying fundamentals.

"There is a strong appetite for similar transactions, across all sectors, particularly in London and other major regional cities in the UK.

"We have been active in the market this year and will continue to be into 2018."

A planning application for an extension to the adjacent Ibis Styles London Southwark Rose hotel is currently being considered by Southwark Council.