Far East Consortium Selling City of London Hotel to Cerberus, Highgate For $160M

Hong Kong-based Far East Consortium, a frequent buyer of UK real estate, has turned seller with its latest deal by agreeing to offload a City of London hotel for £115 million ($160.4 million).

FEC expects to record a gain of about £50 million from the sale of the Dorsett City London Hotel, the company said in a Tuesday press release.

The buyer is a company controlled by two New York-based investment firms, Highgate Hotels and Cerberus Capital Management.

Upon completion of the transaction, FEC’s wholly-owned DHI Hotel Management UK will enter into an agreement to provide management services for the four-star, 267-room hotel at 9-13 Aldgate High Street, a five-minute walk from the iconic Gherkin tower.

The net proceeds from the sale will be used for general working capital. FEC said the deal would let the group realise the value of the hotel, recycle capital, increase liquidity, reduce leverage and reap income from management fees as the hospitality sector stabilises post-pandemic.

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