Maven secures Glasgow office building for £10m hotel conversion
Maven Property has agreed to acquire Douglas House on Waterloo Street, Glasgow from Citruz AG in a £10m redevelopment deal to convert the property into a hotel which will be operated by a renowned international hotel brand. Maven will fund the purchase and development through a combination of a £5m equity fundraising through its UK-wide co-investor network, ‘Investor Partners’, and via a £5m development loan facility.
The development is expected to be completed in 2018 and once open, the hotel will comprise 129 guest bedrooms over seven floors along with a licensed bistro and coffee shop on the ground floor.
Douglas House, located on the corner of Waterloo Street and Douglas Street in the heart of Glasgow’s International Financial Services District (IFSD), has been vacant for a number of years. Today’s announcement will see it undergo a £10 million redevelopment, bringing it back into use. The hotel will be ideally located to target both the business and leisure markets, given its location within the IFSD and being only a short walk from many of Glasgow’s major attractions such as the SSE Hydro Arena and SECC.
The hotel sector in Glasgow continues to perform strongly in the aftermath of the Commonwealth Games which were held in the city in 2014. This is supported by a robust commercial sector with strong conference activity at the SECC, high demand for international leisure pursuits and a busy schedule of events at the Hydro Arena and Hampden Park.
The agreed acquisition and conversion of Douglas House is Maven’s second hotel development this year following the £15 million purchase and planned refurbishment of the Grade II listed Shire Hall in Durham, for conversion into an 83-bedroomed Hotel Indigo.
Maven already oversees two other hotel assets in Glasgow; the 4-star Hotel Indigo, with Marco Pierre White Steakhouse Bar & Grill, now its fifth year of successful trading, and the ibis Styles Glasgow George Square on Miller Street which opened in 2015.
Ramsay Duff, Investment Director at Maven, said: “I am delighted that we have added this excellent property to add to our growing hotel portfolio. Glasgow continues to be a key destination for business and leisure, drawing in visitors from across Europe and beyond. Douglas House is situated in a superb location within Glasgow’s IFSD and is ideally suited for all types of customers with a host of amenities on its doorstep. The project is further evidence of Maven’s growing property business and our commitment to bringing attractive investment opportunities to our clients.”