Arada to turn former Salvation Army HQ into hotel and co-living space

Emirati master developer Arada has bought a site in Southwark that it plans to turn into a hotel and co-living scheme.

In September, the firm purchased a 75% stake in London-based residential developer Regal, committing to an initial £500m to acquire and invest in the firm.

Last month, it bought an 80% stake in a 5,000-home development worth £2.5bn in east London from private developer Keystone.

Its latest deal has seen it buy 99-101 Newington Causeway, close to Elephant & Castle tube station, which comprises two buildings, including a 10-storey building with a basement. It was previously home to the Salvation Army UK and Ireland headquarters before its move to Denmark Hill in 2023.

Arada said the scheme will be developed Arada London, the new name for Regal, which will be sending in a planning application for the hotel and co-living space in the new year.

The firm is already developing two other schemes in the borough – 941 student bedrooms at Devonshire Place and 200 affordable homes at Blackpool Road.

Arada London chief executive Jonathan Seal said: “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.”