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News Release

London

JLL advise on sale of sought after Oxford Hotel and leisure complex

Castle Quarter bought by The Westgate Oxford Alliance for £ 47.2 m


JLL has advised on the sale of the 'Castle Quarter' in Oxford to The Westgate Oxford Alliance, a joint venture between Land Securities and The Crown Estate for £47.2m.

 

The Castle Quarter comprises a 95 bedroom four star Malmaison Hotel, restaurants and bars, 40 apartments let on a long ground lease, education centre, art gallery and a heritage visitor's attraction. Oxford Castle dates back to 1071 when it was originally constructed as a Royal Castle, from which the city and surrounding area were administered. More recently the property was used as a prison from 1785 to 1996 prior to being developed as the Castle Quarter incorporating the hotel by the Osborne Group in 2006.  On completion, the project won a plethora of awards and was opened by the Queen.

 

Trevor Osborne said:  "It is now almost 10 years since this project was completed and let.  It has often been held out as a landmark regeneration project relevant to the disposal of other redundant Victorian prisons in the UK.  The sale price demonstrates that heritage regeneration can be profitable over a period of time."

 

The sale was a unique opportunity to acquire a hotel and leisure investment in Oxford City Centre, one of the UK's most popular leisure markets.

 

JLL's Hotels & Hospitality Group and Leisure teams worked jointly on the deal, advising the Trevor Osborne Property Group.

 

Kerr Young, Director in JLL's Hotels & Hospitality team, said: "There was competitive bidding for this investment opportunity, highlighting the desirability of the Oxford area and the unique heritage and character of the Castle Quarter. 

 

Mark Smith, head of Leisure at JLL added, "The Westgate Oxford Alliance's ownership of the adjacent Westgate Shopping Centre made this acquisition particularly appealing."