BALLYMORE SELLS STAYCITY HEATHROW SERVICED APARTMENTS AND HOTEL TO SCHRODERS FOR £32.4 MILLION
On behalf of Ballymore, CBRE Hotels is delighted to announce the sale of the Staycity Heathrow serviced apartments and hotel in High Point Village, Hayes to Schroders UK Real Estate Fund for £32.4 million, representing a net initial yield of 5.5%.
The serviced apartments, operated by Staycity, opened in 2012 and recently benefited from a 125-key hotel extension providing a total of 269 letting units. This represents the final phase of Ballymore’s High Point Village, a high-profile residential scheme on the doorstep of the new Crossrail station, Hayes and Harlington, opening in 2019.
This is a great way to complete our innovative and hugely successful High Point Village scheme. Ballymore is delighted to have secured a great tenant in Staycity and a sale to a discerning blue chip investor such as Schroder UK Real Estate Fund. We believe that the commitment of both parties is a testament to the high quality of the scheme and buildings as well as validation of Ballymore’s long term commitment to the location.
Serviced apartments represent one of the fastest growing parts of the hospitality sector; supply in the UK has grown at 3.9% per annum since 2008. Staycity has gained significant market presence over past few years, helped by their attractive leased operating model, appealing to a wider range of real estate investors and lenders.
Ballymore was advised by CBRE Hotels.
Schroders was advised by JLL and Gowling WLG.
Law firm Howard Kennedy, led by partner Kate Woodgate, advised Ballymore.