Cerberus and Highgate buy £115m London hotel
Cerberus Capital Management and Highgate have teamed up to buy Dorsett City hotel, EC3, for £115m from subsidiaries of the Far East Consortium.
The joint venture said the hotel, at 9-13 Aldgate High Street, is “well positioned to capitalise on the ongoing economic recovery”.
The deal comes after Cerberus and Highgate bought six hospitality portfolios for $2.7bn (£1.9bn) from Colony Capital earlier this year, marking the latter’s exit from the sector.
Cerberus Capital Management and Highgate have teamed up to buy Dorsett City hotel, EC3, for £115m from subsidiaries of the Far East Consortium.
The joint venture said the hotel, at 9-13 Aldgate High Street, is “well positioned to capitalise on the ongoing economic recovery”.
The deal comes after Cerberus and Highgate bought six hospitality portfolios for $2.7bn (£1.9bn) from Colony Capital earlier this year, marking the latter’s exit from the sector.
FEC said it expected to record a gain of around £50m from the sale. It will use the net proceeds for its general working capital.
Lee Millstein, president of Cerberus Global Investments and global head of real estate for Cerberus, said: “We see significant opportunities in the UK and European hospitality sector that play to our strengths and disciplined approach to long-term investing.”
Mehdi Khimji, co-founder and managing principal of Highgate, said: “Highgate is excited to collaborate with Cerberus to acquire this prominent London property that is poised to meet the steadily rising demand for premier hospitality experiences for business and leisure.
“This acquisition is emblematic of Highgate’s strategy to expand further into the UK and European markets by acquiring and managing quality assets.”
Chris Hoong, managing director of FEC, said that the sale was “consistent with the group’s strategy” and that it highlighted “the tremendous value hidden” in its portfolio. He added that the business will explore “new opportunities to deploy capital at attractive rates of return”.
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Image © Far East Consortium
