Shiva Hotels has acquired London’s Millennium Bridge House for £87.6m, from the private equity group, The Carlyle Group.

The seven-story building, close to St Paul’s Cathedral, with views over the River Thames and the Tate Modern, is a prime acquistion for the UK hospitality group, which is looking for high calibre sites across London. This property will be redeveloped into 348-bed luxury hotel.

Rishi Sachdev, managing director of Shiva Hotels, says: “The purchase of Millennium Bridge House is the latest in a line of strategic acqusitions of significant and high calibre sites across London for the development and operation of landmark hotels.”

In the last 18 months, Shiva Hotels has opened the Hilton London Heathrow Airport Terminal 5, started work on a boutique hotel on Buckingham Gate and a luxury hotel in Canary Wharf. Two more will open by February: Hampton by Hilton Hotels in London Waterloo and London Gatwick North Terminal.

The transaction was completed in conjunction with Longbow Investment. Managing partner, Kevin Cooper, says this is the largest investment for the fund so far, but there is still £300m available and the partners are continuing to look for “attractive investment opportunities with exceptional partners for value add UK commercial, investment and development opportunities.”