Investment firm Tristan Capital Partners, through its European Property Investors Special Opportunities 6 (EPISO 6) fund, alongside Queensway, has secured the purchase of a 63,195 square feet office property situated on St. Andrew Square in Edinburgh, Scotland, from PATRIZIA Hanover PUT (Patrizia). This acquisition marks a significant step in expanding the fund’s Point A Hotel platform, held in partnership with Queensway, subject to planning approvals.

This latest deal, adding to the fund’s earlier acquisitions, extends the Point A platform’s reach to 12 venues across the UK and Ireland. The platform had its foundation strengthened in 2022 when the fund acquired a majority stake, encompassing 10 operating and one development site in these regions.

With this new acquisition, Queensway is set to develop a Point A hotel at the prime location of St. Andrew Square in Edinburgh, a historically significant and centrally located public square in the city’s New Town area.

The stakeholders have allocated substantial additional equity to fuel this growth phase, with a keen interest in strategically located properties in London.

Kristian Smyth, Managing Director of Investments at Tristan Capital Partners, expressed the significance of St. Andrew Square as a prime location in one of Europe’s robust hotel markets. The addition of another Point A hotel in Edinburgh is foreseen as a beneficial move for both the platform and the city, aligning with their ambition to expand the hotel footprint in strategic locations. The focus is on London boroughs, with active discussions underway with agents and existing hotel or office asset owners for potential hotel conversions.

Queensway’s CEO, Naushad Jivraj, voiced excitement over the continuation of their partnership with Tristan Capital Partners, highlighting St Andrew’s Square’s prime location and economic vibrancy. The acquired site is earmarked for redevelopment into a budget boutique hotel offering, situated close to key city attractions. Under Queensway’s management, the Point A Hotels brand continues to uphold quality and value, gaining positive consumer feedback and strong occupancy rates. The existing Point A Hotel in Edinburgh has performed well, and this new project aims to meet the increasing customer demand for accommodations.

Simon West, Fund Manager at Patrizia, expressed satisfaction over the sale completion, which provides liquidity for their fund to shift focus towards value-adding decarbonisation projects within their remaining portfolio, aligning with both ESG and performance enhancement objectives.

Advisory support for EPISO 6 was provided by a range of firms including Brodies, Ogier, BCLP, Workman, Savills, Amicus, and PwC, while Patrizia was advised by JLL and Burness Paull.