News

DTZ Investors, has completed the acquisition of 120–134 Tottenham Court Road, 48–50 Grafton Way and 5 Warren Street, London W1, a rare long-let freehold investment in the heart of the West End for £58 Million.

The freehold 1-acre site totals approximately 174,575 sq ft providing both hotel and retail accommodation. The asset is anchored by a 330-room hotel, let on a long lease to Grafton Opco Limited (t/a Radisson Blu, London Euston Square) until September 2163. The lease is geared to a percentage of ERV and is subject to fixed five-yearly uplifts. The tenant is currently investing around £7.50 million in a phased refurbishment. Alongside the hotel, the property provides approximately 26,365 sq ft of retail accommodation across 12 units, let to a diverse mix of strong covenants including Tesco, Boots, McDonald’s, Starbucks, Caffè Nero, Paul, Rosa’s Thai and Wasabi.

The acquisition offers significant reversionary potential through the fixed rental uplifts from the hotel lease and future market reviews linked to open market value. The asset is underpinned by its Central London location which is set to further benefit from the on-going regeneration of Euston Station.

Tony Gibby, Senior Director at DTZ Investors commented: “This acquisition provides long-term, inflation-linked income from a prime West End location. The combination of a landmark hotel and resilient high-street retail offers both secure income and asset management potential, aligning with our strategic objectives.”

The transaction was completed off-market. DTZ Investors were advised by Simon Ewart Perks at RX London, Savills and Forge; the vendor by Knight Frank.

For more information, please contact Tony Gibby and Rebecca Burley.