Mayfair Capital Investment Management’s Property Income Trust for Charities has completed the £9.4m purchase of a Travelodge Hotel in Teddington, west London.
The deal to buy the building from Longford Securities reflects a yield to the fund of 6.5%. It is let on a 25-year lease with rent reviews linked to the RPIX Index,
The vehicle now has close to £150m of assets, and returned 1.2% in the first quarter compared with the AREF All Balanced Funds Index of 0.8%. Its Q1 distribution payment represents a yield of more than 7.5% to investors buying units in the fund at today’s offer price.
Its void rate stand at 1.4% compared with more than 10% for IPD, with a weighted unexpired lease profile of 10.7 years.
Fund director, James Thornton, said: “The budget hotel sector is relatively buoyant at present, and we have a preference for investing in Greater London. The investment offers a long lease with the prospect of inflation linked reviews without cap or collar.”
Barnes Construction, which has worked with Travelodge on previous projects, created the 113-bedroom hotel from the conversion of a former office building on Station Road.
The Property Income Trust for Charities was advised by Jones Lang LaSalle; the vendor and developer Longford Securities was advised by BNP Paribas Real Estate.
bridget.oconnell@estatesgazette.com
