LONDON & NEW YORK – June 15, 2021 – Cerberus Capital Management, L.P. (together with its affiliates “Cerberus”) and Highgate today announced the signing of a Sale and Purchase Agreement (“SPA”) for the acquisition of Dorsett City London, located at 9-13 Aldgate High Street in London (the “Hotel”), from subsidiaries of Far East Consortium International Limited (“FEC”; SEHK: 35).
Located in the heart of London’s financial district with a strong reputation for luxury and service, Dorsett City London is well-positioned to capitalize on the ongoing economic recovery. This transaction further strengthens Cerberus’ and Highgate’s presence in the U.K. and European hospitality sector and is the latest partnership between Cerberus and Highgate, which includes the recent joint purchase of six hospitality portfolios from Colony Capital earlier this year.
“We are excited to add Dorsett City London to our growing portfolio of high-quality U.K. and European hospitality assets,” said Lee Millstein, President of Cerberus Global Investments and Global Head of Real Estate for Cerberus. “With Cerberus and Highgate’s combined financial and operational expertise, we believe we will be able to elevate the guest experience and position the Hotel for success as the market recovers. We see significant opportunities in the U.K. and European hospitality sector that play to our strengths and disciplined approach to long-term investing.”
Mehdi Khimji, Co-Founder and Managing Principal of Highgate, commented, “Highgate is excited to collaborate with Cerberus to acquire this prominent London property that is poised to meet the steadily rising demand for premier hospitality experiences for business and leisure. This acquisition is emblematic of Highgate’s strategy to expand further into the U.K. and European markets by acquiring and managing quality assets.”
Cerberus’ real estate platform manages approximately $26 billion of real estate-related assets supported by a team of more than 135 investment professionals and asset managers located in the United States, Europe, Asia, South America, and Australia. In March 2021, Cerberus closed approximately $2.8 billion of commitments for Cerberus Institutional Real Estate Partners V, L.P., its flagship global opportunistic real estate strategy.
Highgate is a dominant hotel player in key gateway markets throughout the United States and across Europe, and operates more than 350 hotels and approximately 65,000 rooms around the world. Highgate’s recent experience in the EU hospitality market includes the acquisition and later disposition of the pan-European K+K Portfolio, which consisted of 10 Hotels in European capitals.
