The Saxbury team has been advising an institutional client on Scala House in London’s Fitzrovia. We began by undertaking a comprehensive feasibility study, modelling detailed scenarios and a full report on its current condition, operation and future potential. Our expert knowledge of the London property market enabled us to make careful comparisons between the serviced apartment, residential and student accommodation sector. Having identified a number of issues with the building and operation, Saxbury recommended a plan for optimal use that most suited our client’s requirements.

Within three months of our report being issued to the client, the building started to fail, as our findings had suggested. Saxbury was then immediately instructed to find a more suitable operator for this standalone prime central London apartment block.

The Saxbury team approached a list of international and national aparthotel and serviced apartment operators, leading to interest from 12 key parties. Although there are a handful of serviced apartments in this location, the operators were incredibly keen to acquire more keys and increase their market share as demand for this type of accommodation continues to thrive.

After a tight bidding process, we advised our client to agree on heads of terms with the incoming operator and concluded the transaction at the beginning of 2017.