The Crown Estate has completed the acquisition of the headlease of the Piccadilly Regent Estate, anchored by The Dilly hotel.
The price paid has not been disclosed but is understood to be around £120 million.
Located at a prime position between Piccadilly, Regent Street and Air Street, the estate comprises a 283-bedroom hotel, trading as The Dilly, within a Grade II-listed building, alongside 15 retail and hospitality units, and a separate office building.
The Crown Estate already owns the freehold as part of The Regent Street Partnership, its joint venture with Norges Bank Investment Management.
The Crown did not disclose the vendor but it is understood to be Kuwait's St Martins Property Investments. Knight Frank and JLL advised the vendors.
The Fattal Group bought the Dilly Hotel business in 2022 for £90 million.
It emerged on 3 August that the Crown simultaneously sub-sold the hotel portion of the headlease to Fattal for £66.5 million, retaining the retail and office interests. CBRE advised Fattal.
Charles Owen, head of portfolio management – Regent Street at The Crown Estate, said: “This acquisition marks the latest step in our long-term strategy to enhance our London portfolio. Combined with our recent acquisition of the headlease of 100 Regent Street and significant amounts of development activity that we are undertaking nearby, this deal will help us to deliver our placemaking, financial and environmental ambitions for Regent Street.”
This story has been updated to include details of the sale of the hotel interest to Fattal.