The Portfolio Club is to develop a new lifestyle hotel concept in central London after acquiring an expansive block in Covent Garden for £76.5m.

The Portfolio Club is a joint venture between pension fund APG and real estate investment advisory London Central Portfolio, which was launched last year to create the new hospitality brand in prime central London locations.

The deal to acquire the freehold island site Wellington block on the south east corner of Covent Garden from Capital & Counties Properties PLC, is the second step towards this ambition for The Portfolio Club.