PGIM Real Estate, on behalf of a value-add investment strategy, has entered into a joint venture with Madison Cairn, a newly formed division of Cairn Group, to target the recovering UK hotel sector.
The joint venture will seek to acquire, develop and reposition hotels in the UK with a focus on domestic leisure demand, which has shown strong signs of post-pandemic recovery. In particular, the venture considers that key βstaycationβ destinations and selected other UK locations are likely to outperform in the current geopolitical environment.
The team has secured a strong pipeline of activity, with the joint ventureβs first investment in Brighton.
Commenting on the investment and venture, Charles Crowe, managing director and head of UK transactions at PGIM Real Estate, said: βAt PGIM Real Estate, weβve been investing in Brighton hotels since 2013 and have tracked this opportunity for some time. We are delighted to be working with the Madison Cairn team, who are one of the most experienced operators in the sector. We share conviction that the prospects for selected good-value domestic leisure markets have strengthened in light of recent events, and we look forward to expanding our venture soon in locations such as these.β
Aneil Handa, director of Madison Cairn, commented: βWe are thrilled to announce this strategic joint venture with PGIM Real Estate. We are privileged to be working with one of the worldβs largest real estate managers, in a partnership where our skills complement each otherβs perfectly and position us well for our next chapter of growth in the sector. The acquisition of our first hotel together is a key milestone, with the joint venture having appetite for further expansion.β
PGIM Real Estate is the $209.3 bn real estate business of PGIM.
Cairn is an integrated investor, developer and operator in UK leisure, with a portfolio of 33 hotels.
