Nottingham mixed-use scheme sold as part of £236m deal

Photo courtesy Premier Inn

Nottingham’s Chapel Bar development has been sold as part of a £236m deal.

Chapel Bar, which is just off the city’s Old Market Square, includes a 120-bed Premier Inn hotel, offices and five retail and leisure units.

Sterling Property Ventures has bought the scheme from BlackRock on behalf of British Airways Pension Trustees as part of a wider deal that also includes six other assets in the English regions.

James Howarth, Sterling’s managing director, said: “Our plan is to have a minimum of £1billion of assets under management. Acquiring a property portfolio from British Airways Pensions is a significant stepping stone towards that target. We are seeking high quality assets, ideally with the opportunity to add value, allowing us to bring our skills to bear. As this latest purchase demonstrates, we are sector agnostic.”

The seven new assets will be held in Sterling’s SPV Endeavour vehicle, which is backed by equity investor LetterOne.

Fund manager BlackRock, through its Real Estate business, led the deal on behalf of British Airways Pension Trustees Limited, with joint agents ACRE Capital, Morgan Williams and Capital Real Estate Partners handling the sale.

Sterling was represented by Knight Frank and HP Four LLP. Colliers undertook building surveys, with MAPP providing property management advice.

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