Native Bankside, one of London’s top aparthotels, has been sold by Create REIT to Jastar Capital for in excess of £40 million.

In a transaction which underpins the growing strength of the aparthotels sector, the 75-unit, five-year-old development has been sold but will continue to be operated by Native Places under a new long-term management agreement.

Native Bankside is the UK’s first BREEAM Excellent Aparthotel, illustrating the premium achieved for the most sustainable developments, as the government clamps down through the Energy Performance Certificate regime on less efficient properties.

Minutes from the world-famous Borough Market and Southwark Bridge, Native Bankside is popular with both business and tourist customers, fitting neatly into its cobbled street surroundings as a converted Victorian tea warehouse full of original features and history.

Global real estate adviser JLL describes serviced apartments as “The fastest growing sector in hospitality”, and that there is considerable scope for continued growth with the UK still lagging behind the United States for aparthotels as a percentage of total rooms available.

Jastar Capital is a family-owned business specialising in active asset management and value add opportunities in the hotels, real estate and private equity sectors. The group is made up of highly skilled professionals and advisors with over 35 years of experience in the hospitality, leisure and property sectors in the UK and abroad.

Jay Matharu, Acquisitions Director of Jastar Capital said: “We are excited by the growth potential for aparthotels, there is no better asset in the sector south of the river than Native Bankside. It is in a superb, vibrant location and is expertly managed by Guy Nixon and the Native Places team, who we look forward to working alongside. It is a fantastic addition to our portfolio.”

Guy Nixon, CEO and Founder of Native Group said: “Aparthotels are a safer haven than traditional hotels partly because customers stay for longer periods resulting in lower turnover & servicing costs, which in turn creates a leaner cost structure, delivering stronger profit margins for investors.

“We are excited by the potential for growth at Native Bankside through our new partnership with Jastar.”

Savills advised Create Reit, and Adynaton advised Jastar Capital.