Operating the 1st Mode Aparthotel in Scotland
December 16, 2016
Valad Europe, part of the Cromwell Property Group, a global real estate investment manager, has formed a joint venture with Gloag Investments to acquire Kintore House, a vacant office in Queen Street, Edinburgh for conversion into an Aparthotel. The asset will be operated by BridgeStreet Global Hospitality, the leading international provider of serviced apartment and home experiences built for the business traveller.
Kintore House was acquired from Lonestar and Hudson for £6.3 million by Gloag Serviced Apartments Limited.
Operated under BridgeStreet’s new ‘Mode’ brand, the Aparthotel will be the third of its kind to open globally after Washington and Paris, and will comprised of 82 apartments over four floors.
Simon Marriott, Head of Investments and UK Real Estate at Valad Europe, commented: "The purchase of this asset at the heart of Edinburgh’s central business district, close to both commercial and leisure destinations, represents a superb opportunity to benefit from the ongoing strength of Scotland’s capital and the ability to generate attractive ongoing income and value once the refurbishment is complete.
The Mode brand combines the flexibility and convenience of hotel-style service and accommodation with the character of their guests’ own homes.
“As part of its global roll-out of the Mode Aparthotel brand, BridgeStreet is identifying quality buildings in key gateway cities to convert them into bespoke apartment-style accommodations. The Mode brand combines the flexibility and convenience of hotel-style service and accommodation with the character of their guests’ own homes.”
Andy Richardson, Head of UK Development at Valad Europe added: “Kintore House has been unoccupied for seven years since the onset of the financial crisis. The proposal to regenerate this derelict and functionally obsolete building will generate significant activity in the West End of Queen Street, and will complement and support the commercial businesses located in Edinburgh City Centre. A planning application will be submitted in November with site work due to start in March 2017.”
BridgeStreet CEO Sean Worker said: "Where we operate we aspire to be part of the community, work with local businesses, and recommend the best establishments. Each Mode building will offer a bespoke, unparalleled experience to our guests by providing them with high design and comfort. This includes knowing that the unique feel of Mode is backed by the world-class brand of BridgeStreet Global Hospitality to ensure consistent service standards."
Ann Gloag of Gloag Investments, stated: “We are delighted to be bringing BridgeStreet to the Capital in what will be their first bespoke building in Scotland. We are also looking forward to playing our part in helping to refurbish Kintore House and regenerate what until now has been a relatively unloved corner on one of New Town’s finest streets”.
Pauline Bradley of Greyfriars Investments, advisors to Gloag Investments stated: “Gloag Investments’ acquisition of Kintore House alongside Valad represents a continuation of our ongoing strategy of identifying and backing proven management teams in the delivery of opportunities that can provide long-term value. We have long standing and direct experience of the capabilities of the Valad team and in BridgeStreet we have secured an operator with global reach.”
Rydens advised the purchasing joint venture and Knight Frank acted for the sellers.