London – Bank of London and The Middle East plc (BLME) has provided Criterion Capital (Criterion) with a 3-year, £25 million investment facility as they embark on a transformative office-to-hotel conversion in London’s iconic Trafalgar Square.

Trafalgar Buildings, constructed between 1881-1882, with its ornate stone-faced façade, serves as a formal gateway to Northumberland Avenue from Trafalgar Square. With this project, Criterion Capital is set to rejuvenate the upper floors, converting them into Zedwell Trafalgar Square, a significant addition to Criterion Capital’s ambitious UK-wide expansion of their Zedwell hotel brand.

Zedwell has pioneered a unique sleep-focused hotel concept, thriving in other central London locations. The guest rooms, aptly named “cocoons,” feature noise-reducing walls, floors, and doors, as well as warm ambient lighting, allowing guests to recharge before embracing the energy of the city.

This project also aligns with Criterion Capital’s dedication to preserving historical architecture while adapting buildings to meet contemporary needs. Trafalgar Square is not only a prominent landmark but also a top 10 global tourist attraction, drawing over 15 million visitors annually. As custodians of this strategically important and historic building, Criterion Capital recognises the responsibility of maintaining its legacy while integrating it into the modern urban fabric. Owning one corner of Trafalgar Square reinforces Criterion’s prestigious portfolio, further solidifying their commitment to preserving London’s design heritage.

BLME’s investment facility underscores Criterion Capital’s broader strategy of revitalising obsolete buildings by repositioning them as affordable residential apartments and lifestyle hotels, while minimising environmental impact.

The deal comes as BLME has released new research on Gulf Cooperation Council (GCC) investment in the UK commercial real estate market. The report predicts that total GCC investment is set to hit over $4 billion annually, driven by cuts to interest rates and greater political stability.

Henry Wilson-Holt, Associate Director, Real Estate Finance at BLME, said: “We are thrilled to support Criterion Capital in this transformative project, which aligns with our shared vision of sustainable development and urban revitalisation. We are pleased to have worked with Criterion on this deal and look forward to continuing to provide clients with financing for premium assets, such as this one.”

Omar Aziz, Director at Criterion Capital, commented: “Working with BLME on this deal has been a seamless experience; their expertise and enthusiasm have been invaluable in bringing our vision to life. The transformation of Trafalgar Buildings represents a key milestone in the strategic UK-wide expansion of our Zedwell hotel portfolio. As the first serviced office building in London, and previously occupied by Regus, Trafalgar Buildings is undergoing a thoughtful and carbon-efficient repositioning. Rather than demolishing, we are reimagining it into a use that not only supports local employment but also contributes positively to the surrounding area. Trafalgar Square’s international status and high footfall offers a unique opportunity to advance our commitment to sustainable tourism, adding significant momentum to our strategic growth, with more than 7,000 rooms in our Zedwell pipeline.”

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About Bank of London and the Middle East (BLME)

BLME is a Sharia’a compliant bank based in London. Led by a management team that brings together a combination of experienced international bankers and leading experts in Islamic finance, BLME’s key business areas include: Wealth Management solutions, Mortgages, Commercial Real Estate Finance, and savings products. 

BLME is authorised by the PRA and regulated by the FCA and PRA. For more information, please visit our website www.blme.com

Read BLME’s research report on GCC investment in UK commercial property here: BLME: Opening the Door

About Criterion Capital

Criterion Capital is a leading real estate owner and platform operator with AUM growing to £6bn once our committed repositioning pipeline is delivered. Specialising in converting obsolete buildings into affordable residential apartments and lifestyle hotels, Criterion Capital focuses on long-term value creation through acquisition, development, operation, and retention. The hotel portfolio consists of 23 hotels with over 7000 rooms across the UK. The residential portfolio comprises 4,020 apartments. The commercial holdings total 30 buildings in prime London locations, including their Piccadilly Circus, Leicester Square, and Knightsbridge Green Estates. For more information, please visit www.criterioncapital.co.uk and www.zedwellhotels.com.

KEY CONTACTS
​​​​​​BLME
Callum Nimmo
Consultant
BLME@luther.co.uk

Criterion Capital
Saskia Jiggens
Communications Manager
Saskia.jiggens@criterioncapital.co.uk