By Samantha Jones-
Notting Hill Gate hotel has been sold to German Real Estate investor, Deka Immobilien for the equivalent of around EUR 62 million. It will be added to the portfolio of the open-ended real estate fund
The hotel was developed by Frogmore who acquired the site, originally a retail and residential block, as part of the Notting Hill Gate Estate for their
Completed and opened in May 2023, this 4-star hotel has 173 rooms over 7 floors and offers 6 parking spaces. It is leased long-term to Ruby Hospitality UK Ltd, a subsidiary of the rapidly expanding Ruby GmbH hotel group based in Munich.
The new building is located in Notting Hill, northwest of Hyde Park.
Notting Hill is part of the Royal Borough of Kensington and Chelsea, which is one of London’s most exclusive areas.
The Ruby Zoe is the second Ruby hotel in London and boasts excellent transport links. The aim is to have the building certified as “Very Good” by BREEAM, the British quality mark for
sustainable building.
The purchase of this core property marks DIM’s first transaction of 2024. The fund has built up a tactical liquidity ratio of over 35% via continuous net cash inflows.
These resources are now being used to make successive investments with favourable terms in what is currently a buyer’s market. Anticyclical purchases such as these will make a positive contribution to the fund’s future performance.
The target investment markets for DIM are chosen using a city selection model based on the long-term drivers of growth — globalisation, urbanisation, ecology and new working environments. The focus remains firmly on core properties with long-term lease agreements in very good locations.
DekaBank is the securities services provider of the German Savings Banks Finance Group (SparkassenFinanzgruppe).
Together with its subsidiaries it forms Deka Group. With total customer assets of more than EUR 370 billion (as at 30/09/2023) and more than 5.5 million securities accounts, DekaBank is one of the largest securities services providers and real estate asset managers in Germany.