The Portfolio Club has exchanged contracts to acquire the Wellington block in London's Covent Garden from property investment company Capco for £76.5m.
The Portfolio Club, a joint venture between pension fund APG and real estate investment firm London Central Portfolio, was launched last year to create a new lifestyle hospitality brand in prime central London locations.
It follows the group's acquisition last year of the Harrington Hall hotel in South Kensington, which will also fall under the new lifestyle brand of Residents' Clubs to be rolled out.
The all-suite, flexible stay brand will eventually roll out internationally, and will be catering for the aspirational business and leisure traveller, showcasing British design with a focus on sustainability and smart technologies.
The Wellington block is a freehold island site located on the south-east corner of Covent Garden, comprising six separate properties and recently received planning consent to develop a 146-bedroom hotel with retail and restaurant space.
Naomi Heaton, chief executive of the Portfolio Club, said: "We are delighted to have secured the Wellington block, a unique combination of architecturally beautiful buildings. Covent Garden, under Capco's stewardship is an increasingly thriving and sought-after location with huge appeal to both the domestic and international market."
Robert-Jan Foortse, head of European property investments at APG, said: "APG is delighted to further broaden the Portfolio Club investment programme with the acquisition of the Wellington block in Covent Garden. This represents an attractive opportunity to gain access to a high-quality property in an unrivalled location and to add value through redevelopment and innovation.
"We intend to create a new type of accommodation which is cutting edge in terms of place-making, while promoting the highest standards in environmental and social responsibility. Once completed, the Wellington block will be the hub of our new brand of flexible stay, all-suite hotels. This is a vision we share with our partner, LCP, who will be leading the project on our joint behalf."
Ian Hawksworth, chief executive of Capco, said: "We are pleased to introduce TPC, LCP and APG to the estate as innovative owner operators to redevelop the Wellington block into their contemporary hotel, which will further contribute to Covent Garden's position as a world-class destination."
The Wellington block comprises 25-31 Wellington Street, 23 Wellington Street, 15 Exeter Street, 12 and 14 Burleigh Street and Burleigh House.