Arada Secures Former Salvation Army HQ for London Hotel and Co-Living Development

Emirati developer Arada has acquired the former Salvation Army UK and Ireland headquarters in Southwark, London, with plans to transform the site into a hotel and co-living space. This strategic acquisition marks a significant expansion for Arada in the London market, reinforcing its commitment to the city’s dynamic real estate landscape.

Key Takeaways

Arada has purchased the 0.65-acre site at 99-101 Newington Causeway, Southwark.
The development will feature a hotel and co-living units, marking Arada London’s debut in the co-living sector.
The site is located near Elephant & Castle underground station and is part of an area undergoing significant regeneration.
This acquisition is Arada’s third major investment in London’s residential market this quarter.

Strategic Location and Development Plans

The 0.65-acre site, located just a two-minute walk from Elephant & Castle underground station, comprises two buildings, including a prominent 10-storey structure with a basement. The Salvation Army relocated its headquarters to Denmark Hill in 2023, making the Newington Causeway site available for redevelopment. Arada London, the rebranded entity of the recently acquired Regal, will be submitting a planning application for the new hotel and co-living scheme in the new year.

This project represents Arada London’s third development in the Southwark borough, adding to its existing portfolio which includes student accommodation and affordable housing projects. The company sees significant potential in the area, which has benefited from over £4 billion in investment, including the redevelopment of the Elephant Park and its shopping centre.

Arada’s Growing London Presence

This acquisition is part of Arada’s broader strategy to scale its residential pipeline in London. The company recently purchased a 75% stake in London-based developer Regal, now operating as Arada London, and committed £500 million to acquire and invest in the firm. Furthermore, Arada acquired an 80% stake in a 5,000-home development in east London worth £2.5 billion.

Ahmed Alkhoshaibi, Group CEO of Arada, expressed confidence in London’s long-term real estate strength, stating, “Our continued investment in the capital reflects our firm conviction in London’s long-term strength as a global real estate market.” He added that Arada London’s rapid growth to over 16,000 homes in its development pipeline underscores the team’s capability to deliver high-quality projects at pace.

Jonathan Seal, CEO of Arada London, highlighted the unique opportunity the former Salvation Army headquarters presents. “This acquisition marks a major step for Arada London, as we kick off our third project in Southwark and make our debut in the co-living world,” he commented. The Salvation Army has welcomed the sale, noting that the proceeds will support their ongoing charitable work.