Thursday 14 January 2021 – Media Release
Cain International Provides £74 Million Development Loan for Canary Wharf Aparthotel
Cain International, the privately held real estate investment firm operating in Europe and the United States, has agreed to a £74 million development loan with Canary Wharf Group and edyn – the hospitality group behind lifestyle aparthotel brand Locke – to finance the development of a 279-key Locke aparthotel in Wood Wharf, London, on Canary Wharf’s new mixed-use district.
The 130,000 sq ft development will comprise 194 design-led studio apartments of approximately 25 sq m, and 85 larger apartments of approximately 32 sq m, all of which will offer almost twice the space of a typical boutique hotel room, and benefit from a kitchen and living area. In addition, guests will have access to a range of amenities including a workout studio, a coffee shop and bar, a rooftop restaurant, private meeting and event spaces, co-working space and 300 sq m of retail space. Wood Wharf is expected to be fully delivered by Canary Wharf Group in 2023.
The aparthotel will be located in the north west corner of Wood Wharf, a new vibrant neighbourhood in Canary Wharf, and will be in walking distance to all major corporate occupiers in the area as well as connected to the rest of London via the Jubilee line, DLR, Thames Clipper and the new Crossrail Elizabeth line.
The development will be delivered by Canary Wharf Contractors. Construction works commenced December 2020.
Matteo Milan, Principal at Cain International, said: “We remain confident that hospitality assets which deliver the right offering to their local market will recover quickly in a post-Covid environment and are pleased to bring the sort of high-quality aparthotel space that Locke will provide onto our loan book. We anticipate that aparthotels will experience a particularly pronounced uptick in performance as businesses look for a more cost-effective alternative to hotels and as increased flexible working might lead more individuals to live further out from city centres, increasing the need for occasional overnight stays or accommodation when working on a specific project.”
At the end of 2020, edyn reported its portfolio – which includes lifestyle aparthotel concept Locke and serviced apartment brand SACO – had shown resilience during the pandemic, largely due to its efficient business model and compatibility with extended stay. edyn properties maintained an average occupancy of 65% in 2020; and the latest addition to the Locke portfolio in London, Bermonds Locke in Bermondsey, retained an outstanding average occupancy of 75% since opening in September – cementing the brand as ‘one to watch’ in a post-Covid travel landscape.
Merzak Kaddour, Investment Director at edyn said, “Our robust business model, twinned with our well-structured and deliberate funding strategy – working with agile, specialist lending partners with a thorough understanding of the sector – has allowed us to navigate the challenges of the pandemic and push forward with our European growth. As business travel continues to evolve, Locke’s lifestyle aparthotel concept is poised to capitalise on the demand for flexible, self-sufficient, and well-designed accommodation, and we are excited to bring it to the Wood Wharf development.”
Neil Kermode, Director, Canary Wharf Group, said: “The new aparthotel will be a great addition to the community we are creating at Wood Wharf. We already have people living at Wood Wharf enjoying the green spaces, boardwalks and waterside living. This new community in East London will also include office buildings, designed by some of the world’s leading architects, street level retail, a primary school and NHS medical centre.”
For further information, please contact:
Canary Wharf Group plc
T: 020 7418 2166
Notes to Editors:
About Cain International
Cain International is a privately held real estate investment firm operating in Europe and the United States. Since 2014, the company has invested approximately $6 billion into real estate debt and equity. Cain International also invests in lifestyle & leisure businesses that deliver experiences, services and amenities for modern consumers. Cain International is a partnership between its CEO, Jonathan Goldstein and Eldridge Industries. Cain International Advisers Limited, the firm’s asset management and investment advisory division, is an SEC-registered investment adviser.
edyn has been an industry pioneer in extended stay accommodation for over 20 years. The group has built an extensive range of serviced apartments and aparthotels across our four brands – including lifestyle aparthotel concept Locke, and serviced apartment brands SACO, Wittenberg and The Moorgate, alongside a wider partner network, developing a global supply chain of over 80,000 apartments in 260 key locations. edyn is founded on a philosophy that travel should be a rich journey of discovery, rewarding curiosity with knowledge and inspiration whether travelling for business or leisure.
About Canary Wharf Group:
Canary Wharf Group (CWG) has overseen the largest urban regeneration project in Europe and is a private real estate company that develops, manages and currently owns interests in approximately 7.5 million square feet of office space, 0.9 million square feet of retail and over 500 Build to Rent apartments.
The company’s current £2.4 billion construction activity is composed of 500k square feet of commercial properties and over 1,750 new homes, for sale, for rent, intermediate and affordable. The development pipeline includes a further 4.8 million square feet of secured planning, with a further planning opportunity for North Quay of 2.5 million square feet.
CWG is an industry leader in sustainability including purchasing 100% renewable electricity for the Estate since 2012 and zero waste going to landfill from the managed Estate since 2009. CWG is now the largest sustainable developer in the UK with over 10 million square feet of sustainable certified buildings.