17 October 2017
Reporter: Theo Andrew

LGIM Real Assets lands Stansted hotel for £48.3 million

Legal & General Investment Managers (LGIM) Real Assets has acquired Hampton by Hilton, a hotel located next to Stansted Airport, from Urban&Civic for £48.3 million.

The development, which was completed in July 2017, is the second hotel to be located on-terminal at Stansted Airport.

According to Urban&Civic, it has achieved a profit of £8.5 million, realised on actual cost, while cash going back into the business will exceed £30 million after accounting and development debt.

The property developers will direct the proceeds into large-scale strategic housing projects in areas of high demand and population growth.

Nigel Hugill, chief executive at Urban&Civic, explained it will be “going all out to work” on government policy in order to build desirable environments for people to live, while employing householders looking to expand their output.

Hugill added: ”The sale of Stansted represents an obviously strong outcome for the Group but the core reason for establishing Urban&Civic was to provide new housing choices and accelerate supply through master development.”

A further £1.1 million will be paid to Urban&Civic depending on the assets operational performance over the next two years.

Tom Roberts, head of strategic investment and regeneration at LGIM Real Assets, said: “The fundamentals of this hotel speak for themselves, being the closest hotel to Stansted airport’s security gate, it offers absolute convenience to its guests.”

Roberts added: “The high quality of the new development and the Hampton by Hilton brand, under which the hotel operates, were also major factors in our investment considerations. Since its opening a few months ago, the occupancy figures have been very encouraging and we strongly believe this asset will prove to be an attractive addition to our portfolio.”

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