Hotel Indigo Glasgow sold to Singapore firm

Maven Property, the property arm of Glasgow-based private equity firm Maven Capital Partners, said it completed the £14.5 million sale of the four-star Hotel Indigo in Glasgow’s Waterloo Street to Heeton Holdings, a Singapore-listed real estate conglomerate.

“The structure of the transaction includes the sale of the freehold interest in the hotel to a ground rent fund and of the resultant long leasehold interest to Heeton, which has acquired the trading business and goodwill of the hotel,” said Maven.

“There has been little precedent in structuring hotel sales in this way, but Maven’s significant experience of hotel development funding structures has enabled it to split these two interests in the hotel and drive additional value for its investors.”

Maven investment director Ramsay Duff said: “This historical landmark building is located in the heart of one of the UK’s most vibrant and cosmopolitan cities.

“Maven has a strong commitment to Glasgow, with our headquarters here and with two other hotels including our recently opened ibis Styles Glasgow Centre West.

“The city remains one of the best performing hotel market in the UK, however there have been relatively few hotel transactions in the city and it has been gratifying to see the level of interest in the Indigo.

“We are delighted to have completed the sale, which has delivered attractive returns for investors, in part by the way we structured the transaction.

“The hotel was one of the very first developments to be funded utilising Business Premises Renovation Allowance and it is very satisfying to see it having come right through the entire process; from its original redevelopment, subsequent years of successful trading, and its ultimate sale.”

Hotel Indigo is InterContinental Hotel Group’s upmarket boutique lifestyle brand, where each hotel is uniquely designed “inspired by the local neighbourhood.”

JLL Hotels, Cushman & Wakefield and Macbeth Property Consultants advised Maven Property on the sale, and Harper Macleod acted as legal advisor.