Aparthotel in Former Victorian Tea Warehouse Has 75 Units and Will Continue To Be Operated by Native Places
Jastar Capital has acquired London’s Native Bankside aparthotel, close to the River Thames, from Create REIT in a deal worth over £40 million.
The 75-unit, five-year-old development at 1 Bear Gardens in Southwark has been sold but will continue to be operated by Native Places under a new long-term management agreement that will last 20 years.
Those involved in the deal for the former Victorian tea warehouse say it represents the premium being paid by investors for sustainable developments in the capital as the government tightens the Energy Performance Certificate regime, with Native Bankside the UK’s first BREEAM Excellent aparthotel.
The property, which is part of the Empire Warehouse, is a short walk from Borough Market and Southwark Bridge, and contains original features of the tea warehouse. It is spread across eight floors and gross internal area of 63,636 square feet, while each floor has a typical GIA of 7,955 square feet.
Savills advised Create Reit, and Adynaton advised Jastar Capital.
Jay Matharu, acquisitions director of Jastar Capital, said: “We are excited by the growth potential for aparthotels, there is no better asset in the sector south of the river than Native Bankside. It is in a superb, vibrant location and is expertly managed by Guy Nixon and the Native Places team, who we look forward to working alongside. It is a fantastic addition to our portfolio.”
According to global real estate adviser JLL, serviced apartments are the “fastest growing sector in hospitality” and there is considerable scope for continued growth with the UK still lagging behind the United States for aparthotels as a percentage of total rooms available.
Native Group CEO and founder Guy Nixon said: “Aparthotels are a safer haven than traditional hotels partly because customers stay for longer periods resulting in lower turnover & servicing costs, which in turn creates a leaner cost structure, delivering stronger profit margins for investors.
“We are excited by the potential for growth at Native Bankside through our new partnership with Jastar.”
Jastar Capital is a family-owned business which is in active asset management and value-add opportunities in the hotels, real estate and private equity sectors. The group has more than 35 years of experience in the hospitality, leisure and property sectors in the UK and abroad.
The firm has another property, the Gem Strathmore Hotel in South Kensington at 41 Queen’s Gate Gardens, close to a number of London’s museums. The fully restored mansion, now a 4-star, 77-room hotel was formerly the home of the Earl of Strathmore, the Queen Mother’s father.
Native Places is part of the Native Group which managed £2 billion of assets across aparthotels, serviced apartments and residential build to rent properties.