UK: Real estate investment manager Tristan Capital Partners, through its latest opportunistic fund, has acquired an office property in Edinburgh in partnership with Queensway.
The office property located on St. Andrew Square in Edinburgh has been purchased from PATRIZIA Hanover PUT.
Subject to planning, the deal will see Queensway develop and deliver a Point A branded hotel. It marks the first acquisition for the Point A platform, held in a joint venture with Queensway, since Tristan acquired a majority share in the brand’s parent company via its European Property Investors Special Opportunities 6 (EPISO 6).
At the time, the portfolio comprised 10 Point A hotels in operation and one under development. The Edinburgh transaction takes the total to 12 locations across the UK and Ireland.
Kristian Smyth, managing director – investments, Tristan Capital Partners, said: “St. Andrew Square is a marquee location in one of the strongest hotel markets in Europe. We believe the addition of another Point A in the Scottish capital to complement our existing offer in Haymarket will be a positive for both our platform and the city of Edinburgh.
“Our stated ambition when we acquired the platform was to materially expand our hotel footprint in strategic locations and we are actively focused on delivering on this objective with substantial capital available to deploy. We have identified several London boroughs which are of particular interest and are engaged in dialogue with agents and owners of existing hotels or appropriate office assets suited to hotel conversion.”
Naushad Jivraj, CEO of Queensway, said: “We are thrilled to build on our existing partnership with Tristan Capital Partners’ fund and continue the expansion of the platform. St Andrew’s Square in Edinburgh is a prime city centre location with excellent economic and social activity. The acquired site will be redeveloped to provide consumers with a new budget boutique offering located in the heart of the city close to key attractions.
“Under the management of Queensway, the Point A Hotels brand is continuing to develop a high-quality product at great value, generating positive customer feedback resulting in strong occupancy levels.
“Our existing Point A Hotel in Edinburgh has been very well received by consumers and is one of the strongest performing hotels in our portfolio. We hope that this new project will provide much needed additional capacity for which we see significant customer demand.”
Simon West, fund manager at Patrizia, added: “On behalf of Patrizia Hanover PUT, we are very pleased to have completed on the sale of the St Andrews Square. The disposal generates liquidity for the fund to focus its attentions on value adding decarbonisation projects in the remaining portfolio, delivering both ESG and performance benefits.”