Harbour Exchange, London

Getting ahead of occupier trends in Central London

Though occupiers were starting to shift their office space search away from central London to fringe locations, we knew they still needed to find high-quality accommodation with strong transport links.

After identifying three self-contained, multi-let office buildings just south of Canary Wharf and next to South Quay DLR station, we took on this well-specified, 190k sq ft accommodation for £37m alongside a co-investment partner.

As rents were rising in the City of London, we undertook a series of asset management initiatives. These included upgrading all vacant offices, improving reception areas and external entrances, and overhauling the Mechanical & Electrical (M&E). Overseas investors bought Harbour Exchange via two transactions in 2016 and 2018 – demonstrating a growing appetite for prime office space in desirable locations beyond the City of London.

Westminster

High Wycombe

Livingston

Milton Keynes

Slough

Southampton

St. Albans

Watford

Penang Portfolio

Convert obsolete office buildings near key transport hubs into low-cost hotels under Tune Hotel brand

During a time where the budget hotel sector was growing three times faster than the overall hotel market, we identified the opportunity to exploit undersupply in the London budget hotel market. We gained exclusive rights to develop low-cost hotels under the Tune Hotel brand in London for seven years as part of a joint venture.

The Tune Hotel concept was based on providing a high-quality bed and shower at a very affordable price. Like low-cost airlines, the marketing model was internet-driven with pricing based upon demand and early booking opportunities, offering access to very low rates.

We converted secondary London office assets into a prime hotel platform through acquisition from distressed sellers. The business produced an attractive cashflow profile with the potential for long-term capital appreciation.

Having supported the early stages of this business development, we sold our share to a long-term investor in 2013 to be part of the next phase of growth.