Joint venture partners Cathedral Group PLC and Development Securities PLC have completed a deal with Travelodge for the pre-let of a 104-bed hotel at The Movement, Greenwich and have also completed forward funding to an American private investor for £8.6m, representing an investment yield of 6.4%. The hotel is a key element at the new vibrant mixed-use development located in the heart of Greenwich.The investor will also provide construction funding.
Construction of the hotel will commence in October 2013 and contractor, Anglo Holt (who has built over 50 hotels for Travelodge) has been appointed to carry out the build. The hotel is due to open in September 2014 and will sit in a prime position within the development, which is adjacent to Greenwich Docklands Light Railway and mainline station. The hotel will bring additional revenue to the local economy and is likely to create over 20 new jobs for the local community.
The Movement, which was granted planning permission in 2011 and is currently under construction, is a 2.2 acre site that will also offer 181 residential apartments (being built by Willmott Dixon), 358-student apartments to be occupied by the University of Greenwich (by McLaren and L&G), a health and fitness club, convenience food store, nursery, bicycle café and 7,000 sq ft of business ‘start-up’ units. A new public, pedestrian-friendly street will run through the development connecting the DLR with Norman Road. The first residents will be moving into their new accommodation by Christmas 2013.
As part of the section 106 agreement, the development will also feature an extension to the existing West Greenwich Community Centre, which will be completed in September. This will provide the facility at no cost to the Royal Borough of Greenwich, with an extra 2,000 sq ft of floor space and increase the venue’s capacity by 250 people. Over the next ten years it is anticipated that the whole scheme will generate £275 million for the local economy.
Andrew Storey, Development Director at Cathedral Group said:
“This deal completes the principle elements of development at the Movement, Greenwich and underlines Cathedral’s ability to create value from complex mixed-use sites for the community and investment partners while living up to our aspiration to create great places”.
Tony O’Brien, UK Development Director for Travelodge Hotels, said:
“We are delighted that funding for this scheme has been secured. It is a fantastic location and a great development to be part of. We have two other hotels in the Borough, opposite the Deptford Bridge DLR Station and in the centre of Woolwich, and both trade really well. This new hotel is fantastically located for the National Maritime Museum and the Cutty Sark and, being next to the DLR and Mainline station, is also great for getting into central London.”
Philip Chatterton of Sladen Capital Partners represented Cathedral Group and Development Securities PLC, Alan Hill of AEH represented Travelodge in the exchange of contracts and Colliers International Property Advisers UK LLP advised the private investor.
