Strategic Investment Expansion in Central London Hotels

Strategic Hotel Investment in Central London

Prima Asset Management, a well-known private equity real estate firm based in Singapore, has recently embarked on an exciting journey by partnering with Dr. Jerry Schwartz, Australia’s foremost private hotel investor, through the Schwartz Family Company. This collaboration aims to expedite Prima's expansion efforts in one of Europe’s prime hotel investment hotspots: Central London. The Schwartz Family Company plays a significant role in this initiative, bringing expertise from its extensive portfolio, which includes 15 hotels and over 4,300 rooms across Australia.

Understanding the Partnership

This partnership builds upon years of mutual respect and collaboration between the two entities. Dr. Schwartz shared his personal connection to this investment, stating, "Having been associated with the Prima team for over two decades, our relationship has grown stronger over the years. This venture not only reflects our longstanding ties but also my personal history in London, a city that holds cherished memories for me. I believe that Prima's vision coincides with my commitment to creating modern and sustainable hospitality experiences."

Ben Hall, CEO and Co-Founder of Prima, echoed these sentiments by emphasizing the potential of their strategic approach. He remarked, "Our focus on pursuing value-add opportunities within Central London is already proving advantageous. By leveraging our internal capabilities alongside esteemed industry partnerships, we are set to generate sustainable, long-term returns through our regulated VCC Fund, overseen by First Degree Global Asset Management."

Market Insights and Future Opportunities

As the partnership deepens, opportunities within Europe's leading hotel market continue to emerge. London has already seen impressive transactions; in the first half of 2024 alone, hotel transactions reached €2.6 billion, representing a staggering 215% increase compared to the same period the previous year. The city remains a sought-after destination for hotel investments, bolstered by a robust pipeline of potential acquisitions.

Michael Van den Brande, Senior Investment Manager at Prima, shared insights about the bright future ahead, stating, "With an impressive influx of transactions in London, we anticipate additional acquisitions before the end of the year. Our goal is to stay at the forefront of this dynamic market."

Birbal Singh Bajaj, Co-Founder of Prima, emphasized the importance of establishing partnerships in London, asserting, "Our collaborative presence in this vibrant market is a key aspect of our growth strategy. We are genuinely enthusiastic about the array of investment opportunities that lie ahead as we expand our footprint here."

Looking Ahead: The UK Expansion Strategy

As Prima progresses with its UK expansion, the focus will squarely be on acquiring and improving hotel properties in Central London. The company is also committed to transforming the Paddington hotel site, which serves as a flagship project for their future ambitions. To further enhance this strategy, Aurum Gravis has pledged support for Prima's hotel expansion and targeted ventures within the Purpose-Built Student Accommodation (PBSA) and Co-Living sectors, ensuring a diversified portfolio in strategic UK locations.

About Prima Asset Management

Prima’s mission revolves around harnessing investment opportunities in the hospitality sector. Through a disciplined approach and strategic asset management, the firm aspires to deliver strong, risk-adjusted returns while revitalizing hotels in Central London and beyond. Their focus extends to innovative developments in the PBSA and Co-Living sectors across the UK.

Media Contact Information

For media inquiries, reach out to Michael Van den Brande, Senior Investment Manager. His contact details include a direct phone line for swift communication.

About Schwartz Family Company

The Schwartz Family Company, established in 1973, stands as Australia’s largest privately held hotel group. Its portfolio boasts 15 hotels and over 4,300 rooms under prestigious brands, including Sofitel, Novotel, and Hilton. Alongside its hotel operations, the company owns Sydney Brewery and invests in various hospitality ventures. They are dedicated to sustainable practices, implementing measures like renewable energy use and waste reduction initiatives across their operations.

Frequently Asked Questions

What is the purpose of the Prima and Schwartz partnership?

The partnership aims to facilitate the expansion of Prima Asset Management in Central London's hotel market.

What did Dr. Schwartz express about the investment?

Dr. Schwartz emphasized his personal connection to London and his long-standing relationship with Prima, aligning with his passion for sustainable hospitality.

How does Prima plan to achieve growth in the UK?

Prima intends to focus on acquiring and redeveloping hotels, including the Paddington project, and expanding into the PBSA and Co-Living sectors.

What recent market trends are influencing this investment?

London's hotel market recorded a significant surge in transactions, with €2.6 billion in sales during the first half of 2024, reflecting strong investor interest.

Who can be contacted for more information about this venture?

For media inquiries, Michael Van den Brande, Senior Investment Manager at Prima, is the main contact person.

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