DTZ Investors has completed the £58 million acquisition of a freehold hotel and retail block in London’s West End.

The asset, located at 120-134 Tottenham Court Road, 48-50 Grafton Way and 5 Warren Street, extends to around 174,575 sq ft and is anchored by a 330-room hotel.

The hotel is leased to Radisson Blu on a long-term agreement running until 2163, with fixed five-yearly uplifts. The tenant is currently investing approximately £7.5 million in a phased refurbishment of the property.

Alongside the hotel, the block includes around 26,365 sq ft of retail accommodation across 12 units, let to a mix of occupiers including Tesco, Boots, McDonald’s, Starbucks, Caffè Nero, Paul, Rosa’s Thai and Wasabi.

Tony Gibby, senior director at DTZ Investors, said: “This acquisition provides long-term, inflation-linked income from a prime West End location. The combination of a landmark hotel and resilient high-street retail offers both secure income and asset management potential, aligning with our strategic objectives.”

RX London, Savills and Forge advised DTZ Investors, while Knight Frank acted for the vendor.

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