The Cavendish London, a 230-room hotel in London UK, will be acquired by The Ascott Limited, a serviced residence business unit of CapitaLand.
The transaction is priced at GBP158.8 million, and on completion, of the deal in the fourth quarter of 2012, Ascott will operate the hotel. The hotel will later be transformed into luxurious serviced apartments that will be operated under the ‘Ascott the Residence’ brand, and the development will be named, Ascott St James London.
The Cavendish London is located on Jermyn Street, in Mayfair. The location is close to the city’s prime cultural, dining, shopping and leisure attractions, including The Royal Academy of Arts, Fortnum & Mason, West End theatres and cinemas, Bond Street, as well as the open spaces of Green Park and St James’s Park.
Chong Kee Hiong, the company chief executive officer, said, ‘London is one of the strongest and most resilient hospitality markets where demand from business and leisure travellers for international-class serviced residences continues to grow. This is an attractive opportunity to acquire a quality operating property, which is strategically located in the prestigious Mayfair area.
We see the potential to transform this property into one of the best luxury serviced residences in London. The acquisition of The Cavendish London is in line with our articulated strategy to seek investment opportunities in key growth cities in Asia and Europe.’
Currently Ascott operates numerous properties in London, including Ascott Mayfair, Citadines Prestige Trafalgar Square, Citadines Prestige Holborn-Covent Garden, and Citadines Prestige South Kensington serviced residence.