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(Sharecast News) - PPHE Hotel Group said on Friday that it has completed the 17.5m acquisition of a prime development site near the City of London, which would house its first select-service hotel in the capital.
The FTSE 250 company said the 13,000 square metre mixed-use site, located close to Tower Bridge, already had planning permission.
It said the project, due to open in 2029, would feature a Radisson RED lifestyle hotel with at least 182 rooms, alongside a restaurant, bar, gym and 41,000 square feet of office space.
PPHE said it expected total investment in the development to be around 90m, including the purchase price, with an unlevered annual yield in the high single digits once stabilised.
The scheme would also target a BREEAM "Excellent" environmental accreditation.
PPHE said the acquisition was the second by its European Hospitality Fund, following the opening of the five-star art'otel Rome Piazza Sallustio earlier in the year.
At 1021 BST, shares in PPHE Hotel Group were up 1.48% at 1,374p.
Reporting by Josh White for Sharecast.com.
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